Missouri Dairy Business Update
According to Bob Cropp's September Dairy Outlook, "USDA's milk production report showed August milk production 1.9% higher than a year ago. The July milk production was also revised up to a 1.6% increase. The increase in August was due to 16,000 more cows than a year ago, a 0.5% increase, and 1.4% more milk per cow. Despite some really low milk prices milk cow numbers have been increasing. Since the beginning of the year cow numbers have increased by 40,000 head. There are plenty of replacements to increase the cow numbers and cow slaughter has been 1.4% lower thus far this year."
"Milk prices had a good run up but prices aren't holding. The Class III price was a low of $12.76 in May and had increased to $16.91 in August. But, cheese prices have fallen which means lower milk prices again."
"Milk prices should improve as we move into 2017 with the Class III price back in the $16's and perhaps even reaching $17 by 4th quarter."
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|CME Class III and Class IV Milk Futures|
Class III Milk
Class IV Milk
Historical Missouri milk prices including comparison to the USDA National All Milk Price used for MPP may be found at:http://dairy.missouri.edu/mkt/index.htm