|Missouri Dairy Business Update|
|Volume 6, Number 7|
According to the USDA Dairy Outlook, "The projected average price for Class III milk is $11.40-$11.70 per cwt, up slightly from June’s projection. The Class IV price is expected to average $10.45-$10.85 per cwt, down from June’s estimate. The all milk price for 2006 is expected to average $12.50-$12.80/cwt"
According to Bob Cropp's July Monthly Outlook, "As of now, I look for a Class III price by September reaching $12.25 and an average all milk price of $13.15. Currently Class III futures are not this optimistic. To reach the $12.25 Class III price, we need a rally in cheese prices to about $1.32 per pound"
Future MILC estimates may be derived from the following formula:
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/