|Missouri Dairy Business Update|
|Volume 4, Number 10|
The delay of full BST availability will dampen recovery in milk per cow during the first half of 2005. However, the prospects for substantial recovery in gains in milk per cow remain generally favorable. Some additional BST will be available, relative milk and concentrate feed prices will encourage heavier feeding, forage supplies will be ample even if quality is somewhat mixed, more normal culling may resume if heifer supplies recover, and milk per cow has already shown recovery from the very weak levels of the first half of 2004. Good weather for cows undoubtedly boosted summer milk per cow, but some of the economic factors probably also made significant contributions."
According to the Outlook published by Bob Cropp at the University of Wisconsin,
"In summary, while the probability is high that milk prices will average lower in 2005 as compared to 2004, they should stay above the historical averages. The futures market currently reflects this and producers need to consider these price protection opportunities in there price risk management strategies. History clearly shows that relatively small changes or anticipated changes in milk production or commercial disappearance can have a significant impact on milk prices in an upward as well as a downward direction."
Historical Missouri milk prices may be found at: http://agebb.missouri.edu/dairy/mkt/index.htm
Hedging Opportunity Chart for next 12 Months http://www.uwex.edu/ces/milkmarketing/