Missouri Dairy Business Update
Volume 3, Number 3
March 2003

According to the latest USDA Dairy Outlook at
http://www.ers.usda.gov/publications/so/view.asp?f=livestock/ldp-mbb/

"Signs of adjustment to much lower prices are beginning to emerge. But, these signs are quite faint, and no real momentum has developed to slow growth in milk production or to boost dairy demand. Significant recovery in milk prices does not seem likely in 2003."

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

Current USDA Milk Price Forecasts
17-Mar-03

	1st Q 2003	2nd Q 2003	3rd Q 2003	4th Q 2003
Class III Price	9.50 to 9.70	9.35 to 9.85	9.55 to 10.35	10.15 to 11.15
Class IV Price	9.75 to 10.05	9.45 to 10.05	9.65 to 10.55	9.90 to 11.00

Source: USDA, ERS, Livestock, Dairy & Poultry Outlook
http://www.ers.usda.gov/publications/so/view.asp?f=livestock/ldp-mbb/

2003 Milk Futures on the Chicago Mercantile Exchange
25-Mar-03

	Mar-03	April	May	June	July	Aug	Sept	Oct	Nov	Dec	Jan-04	Feb
Class III	$ 9.10	$ 9.42	$ 9.72	$ 10.35	$10.65	$10.85	$11.37	$11.47	$11.30	$11.34	$11.28	$11.25
Class IV	$9.93	$10.05	$10.25	$10.40	$10.45	$10.45	$10.50
est. MILC pmt.	$1.75	$1.82	$1.62	$1.53	$1.47	$1.36	$1.28

Note: Estimated MILC Payment from http://cpdmp.cornell.edu/