Hedging Opportunity Chart for next 12 Months www.uwex.edu/ces/milkmarketing/

According to the latest USDA Dairy Outlook, "Recent information led to lower projected 2004 milk production, now expected to be about unchanged from 2003. The January 1 cattle inventory indicated that supplies of dairy replacements will be significantly smaller than a year earlier. More importantly, availability of bovine somatotropin (BST) will be quite limited because the maker has imposed allocations that are expected to extend until the end of 2004."

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

2004 Milk Futures on the Chicago Mercantile Exchange
2/25/04	Mar	Apr	May	Jun	Jul	Aug	Sept	Oct	Nov	Dec	Jan 05
Class III Price	$13.25	$13.75	$13.97	$14.20	$14.29	$14.35	$14.95	$13.95	$12.75	$12.23	$11.80
Class IV Price	$12.35	$12.40	$12.50	$12.57	$12.67	$12.75	$12.85	$12.60	$11.90	$11.69
est. MILC pmt.	$ 0.83	$ 0.95
Note: Estimated MILC Payment from http://cpdmp.cornell.edu/

Current USDA Milk Price Forecasts
2/17/04	1st Q 2004	2nd Q 2004	3rd Q 2004	4th Q 2004
Class III Price	11.50 to 11.80	11.05 to 11.65	11.70 to 12.60	12.70 to 13.70
Class IV Price	11.05 to 11.45	10.65 to 11.35	10.80 to 11.80	11.15 to 12.25
Source: USDA, ERS, Livestock, Dairy & Poultry Outlook
http://usda.mannlib.cornell.edu/reports/erssor/livestock/ldp-mbb/

MILC payments for January milk will be $0.83/cwt. and for February the payment will be $0.95/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: www.fmmone.com/Northeast_Order_Prices/MILC%20calculator/DMLP.htm