Missouri Dairy Business Update Commercial Agriculture
Volume 3, Number 5
May 2003

Milk Prices

Nearby milk futures prices have declined slightly since last month, as the months further into the future have strengthened a tiny bit. MILC payments for June milk will be $1.78.

According to the latest USDA Dairy Outlook, "The very low prices of 2002 and 2003 probably will generate substantial adjustments in production and use of milk and dairy products. However, initial adjustments have been very slow to begin and quite modest, failing to develop much momentum. At this pace, considerable time will be needed for enough slowing in production and recovery in use to eat away the current surplus and commercial stocks. First projections of 2004 dairy markets show only a slight rebound from this year's very low prices."

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

Current USDA Milk Price Forecasts
16-Apr-031st Q 20032nd Q 20033rd Q 20034th Q 2003
Class III Price9.529.45 to 9.759.70 to 10.3010.15 to 11.05
Class IV Price9.899.55 to 9.959.70 to 10.409.85 to 10.85
Source: USDA, ERS, Livestock, Dairy & Poultry Outlook
http://usda.mannlib.cornell.edu/reports/erssor/livestock/ldp-mbb/

2003 Milk Futures on the Chicago Mercantile Exchange
29-Apr-03Apr-03MayJuneJulyAugSeptOctNovDecJan-04FebMar
Class III Price$9.41$9.80$10.25$10.85$11.39$12.15$12.20$11.92$11.76$11.45$11.50$11.40
Class IV Price$9.85$10.15$10.15$10.17$10.25$10.30      

MILC payments hit $1.78 for June

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/MILC%20calculator/DMLP.htm

Known MILC Payments for 2003 areEstimated MILC payments based on futures, as of 4/29/2003. Source http://cpdmp.cornell.edu/
January$1.41June$1.78
February$1.55July$1.58
March$1.75August$1.37
April$1.82September$1.05
May$1.79October$0.76


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