|Missouri Dairy Business Update|
|Volume 2, Number 9|
According to USDA's September 26, 2002, Dairy Outlook, http://www.ers.usda.gov/publications/so/view.asp?f=livestock/ldp-mbb/
"Wholesale dairy prices may post some seasonal increases in coming months, but such rises are expected to be quite moderate.
Butter stocks will remain a major price factor, and these holdings are not likely to be worked off quickly or easily. Prices are projected to stay lackluster well into 2003. If production slows while demand recovers during the year, some price recovery is likely. However, only modest price rebounds currently seem most likely.
Farm milk prices in 2002 are projected to fall an average of almost $3 per cwt from 2001's strong showing. This would be the largest proportional single-year drop in a half century. Farmers are expected to receive only slightly higher prices in 2003."
For a look back at milk prices over the last seven years, take a look at this graph: http://www.usda.gov/nass/aggraphs/pricemk.htm
The future's market is showing some seasonal strength.
| ||October||November||December||January 03||February 03||March 03|
Source: Merc website: http://www.cme.com/prices/index.cfm
For historical price trends between futures & Missouri milk prices check: http://agebbfp.missouri.edu/commag/beefanddairy/Basis.htm