|Missouri Dairy Business Update|
|Volume 8, Number 10|
According to Bob Cropp's Dairy Outlook, "While milk production is now increasing less than 2% over last year, the weakening of farm milk prices is the result of softening of both domestic sales and exports of dairy products. Relatively high retail dairy food prices and gas prices along with the economic down turn is hurting
High feed prices and lower milk prices will reduce the size of the dairy herd in 2009 as well as increases in milk per cow. Milk production may increase by no more than 1% over that of 2008. But, a slower growth in domestic milk and dairy product sales as well as lower dairy exports during 2009 will result in lower milk prices for 2009. At this time both Class III and Class IV futures for all of 2009 are $2.00, $3.00 or more dollars below comparable monthly 2008 prices."
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/