Missouri Dairy Business Update  
Volume 7, Number 7
July 2007

Milk Prices

According to the USDA Dairy Outlook, "Domestic demand for dairy products, especially cheese, will keep product prices high throughout the balance of 2007. Prices could moderate slightly in 2008.

The Class III price is forecast to average $18.00 to $18.30 per cwt for the year. The reported all milk price is expected to be sharply higher in 2007 compared with 2006 and will likely average $19.00 to $19.30 per cwt for the year. Milk prices will likely moderate in 2008. The Class IV price is forecast to average $17.45 to $18.55 per cwt, and the Class III price to average $16.55 to $17.55 per cwt. The all milk price is forecast to average $18.20 to $19.20 per cwt for 2008, a slight decline."

Milk Futures on the Chicago Mercantile Exchange
7-19-07
July
Aug
Sep
 Oct Nov Dec Jan 08 Feb Mar Apr
Class III $21.20 $18.90 $17.80 $17.00 $16.45 $16.05 $15.25 $14.90 $14.95 $14.95
Class IV $21.30 $20.99 $20.70 $19.60 $19.55 $18.70 $17.20 $17.00 $17.00 -
Butter Futures $1.48 $1.52 $1.53 $1.54 $1.53 $1.55 $1.57 $1.56 $1.56 $1.57

Current USDA Milk Price Forecasts
7-20-07
3rd Q 2007
 4th Q 2007 1st Q 2008 All 2008
Class III Price $19.19 to $19.69 $17.99 to $18.79 $16.94 to $17.94 $15.95 to $16.96
Class IV Price $20.63 to$21.23 $19.63 to $20.53 $18.17 to $19.27 $17.25 to $18.35
Source: USDA, ERS, Livestock, Dairy & Poultry Outlook


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/


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