|Missouri Dairy Business Update|
|Volume 4, Number 8|
According the USDA's latest Dairy Outlook, "Cheese and butter markets have undergone dramatic adjustments following their extreme April price peaks. Prices should be less volatile during the rest of the year if the adjustment process is as close to complete as it appears. However, prices are expected to slip slowly as market fundamentals ease."
According to Bob
Cropp at the University of Wisconsin, "In summary, while milk
production overall showed some improvement in July, it is a slow improvement
that will keep milk prices above the 5-year average, at least through
this year and perhaps in to 2005. Indications are that wet weather
had reduced the supply of high quality alfalfa. In addition, the cooler
than normal summer temperatures, while good for better milk per cow,
could pose a problem for this years soybean and corn crop, if an early
frost would set in. So the over all forage, grain and protein situation
for this winter is still unclear and could impact the direction of
milk prices this winter."
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/