|Missouri Dairy Business Update|
|Volume 6, Number 1|
According to the Bob Cropp's January Outlook, "January product prices will yield a January Class III price only a few cents lower than the December Class III price of $13.37. But, the Class III price for February through March will fall below $13.00 and in the range of $12.60 to $12.85. Class III prices could move above $13.00 by July, but are not likely to peak any higher than $13.75 by September for the year. But, these forecasted milk prices can easily change with un-anticipated changes or perceived changes in milk production and/or commercial disappearance. But, unless milk production increases slow faster than what is now anticipated, substantially higher prices have a low probability of occurring. So dairy producers need to evaluate whether or not they want to protect any of 2006 milk prices with what the futures market is offering and/or cash forward contracts offered by milk buyers."
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/