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Milk Prices
According to the USDA's Dairy Outlook, "High prices for both dairy cows and
replacements indicate strong demand for animals and herd expansion. While not all
areas of the country reported production increases, producers are responding to high
market prices for milk. Higher feed prices have not been a deterrent to herd
expansion. However, high feed prices and tight alfalfa supplies could limit
production growth per cow in 2008.
Demand for dairy products will keep milk prices high both this year and next. The
Class IV price is projected to average $18.50 to $18.80 per cwt in 2007 and decline
slightly to $17.65 to $18.75 in 2008. Likewise, the Class III price is expected to
average $18.10 to $18.30 per cwt this year and soften to $16.35 to $17.35 per cwt
next year. The all milk price will average $19.20 to $19.40 per cwt in 2007. A
decline to between $18.30 and $19.30 per cwt is expected in 2008."
Milk Futures on the Chicago Mercantile Exchange |
9-21-07 |
Sep |
Oct |
Nov |
Dec |
Jan 08 |
Feb |
Mar |
Apr |
May |
June |
| Class
III |
$20.17 |
$18.26 |
$17.41 |
$17.15 |
$16.47 |
$15.93 |
$15.97 |
$15.76 |
$15.73 |
$15.79 |
| Class
IV |
$21.45 |
$20.60 |
$19.60 |
$18.70 |
$17.55 |
$17.50 |
$17.50 |
$17.20 |
$17.25 |
$17.20 |
| Butter
Futures |
$1.39 |
$1.39 |
$1.39 |
$1.40 |
$1.44 |
$1.45 |
$1.46 |
$1.51 |
$1.53 |
$1.54 |
| Current
USDA Milk Price Forecasts |
9-20-07 |
3rd Q 2007 |
4th Q 2007 |
1st Q 2008 |
All 2008 |
| Class
III Price |
$20.52 to $20.72 |
$19.70 to $20.20 |
$17.78 to $18.68 |
$16.35 to $17.35 |
| Class IV Price |
$21.61 to $21.91 |
$21.19 to $21.79 |
$19.56 to $20.56 |
$17.65 to $18.75 |
| 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/ |