Missouri Dairy Business UpdateCommercial Agriculture
Volume 2, Number 8

August 2002

Fall Milk Price Outlook

Not much good news on the milk price front. Futures prices moved lower over the past month for all the months till the end of 2002.

According to the August 27, 2002 USDA Dairy Outlook, "Second-half returns over concentrate costs are projected to average well below those of any recent year, even when the direct market loss payments are taken into account. However, expanding producers have been more successful in overcoming obstacles to growth than was earlier expected, and milk cow numbers may stay above a year earlier through the end of 2002. For all of 2002, milk production is projected to rise almost 3 percent on the strength of a sizable rise in milk per cow and a tiny increase in average milk cow numbers." http://www.ers.usda.gov/publications/so/view.asp?f=livestock/ldp-mbb/

Milk Futures on the Chicago Mercantile Exchange

Class III$ 9.57 $ 10.12$ 10.45$ 10.90$ 10.90
Class IV$ 10.50$ 10.50$ 10.50$ 10.60$ 10.60
Source: Merc website: http://www.cme.com/prices/index.cfm

For the latest Missouri milk prices and government MILC payments, check the buttons on the bottom of the Missouri Dairy Business Update Homepage

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