According to the latest USDA Dairy Outlook, "The decline in total milk available and the expansion in production of other cheese were enough to hold down Cheddar cheese production, despite a large diversion from butter and nonfat dry milk.

Winter cheese prices are expected to average more than a dime higher than the very low levels of a year earlier. Cheese demand probably will recover further, and milk production is projected to be only slightly larger on a daily average basis. Also, markets for other dairy products probably will be in considerably better balance than a year earlier.

Even so, price improvement probably will be relatively limited. Although most market factors are expected to support stronger prices, the changes are not projected to be very dramatic."

Historical Missouri milk prices may be found at: http://agebb.missouri.edu/modbu/milkprices.htm

2003-04 Milk Futures on the Chicago Mercantile Exchange
11/25/2003	Dec	Jan-04	Feb	Mar	Apr	May	Jun	Jul	Aug	Sept	Oct
Class III Price	$11.60	$11.71	$11.43	$11.41	$11.50	$11.55	$12.03	$12.52	$12.95	$13.37	$12.78
Class IV Price	$10.12	$10.50	$10.55
est. MILC pmt.	$ 0.00	$ 0.95	$ 0.91
Note: Estimated MILC Payment from http://cpdmp.cornell.edu/

Current USDA Milk Price Forecasts
11/25/03	4th Q 2003	1st Q 2004	2nd Q 2004	3rd Q 2004
Class III Price	12.95 to 13.25	10.55 to 11.15	9.85 to 10.75	10.50 to 11.50
Class IV Price	9.95 to 10.35	9.65 to 10.35	9.50 to 10.50	9.85 to 10.95
Source: USDA, ERS, Livestock, Dairy & Poultry Outlook
http://usda.mannlib.cornell.edu/reports/erssor/livestock/ldp-mbb/

MILC payments for November and December milk will be $0.00/cwt. To view the calculations behind the MILC payments and to check the very latest MILC payments check the NE Milk Marketing Administrators website at: http://www.fmmone.com/Northeast_Order_Prices/MILC%20calculator/DMLP.htm