|Missouri Dairy Business Update|
|Volume 8, Number 2|
According to the Bob Cropp's Dairy Outlook, "Farm level milk prices have declined but remain relatively high. The February Class III price
will be near $17.20, down more than $2 from the $19.32 for January but still more than $3.00
higher than a year ago. The Class IV price for February will be near $15.40, down about $0.90
from the $16.29 for January but still about $2.70 higher than a year ago. We can expect the Class
III to fall below $17.00 for March but it could stay above $16.00 through at least October.
Currently, Class III futures are all in the high $16.00s. Class IV is also likely to decline further
dropping below $15.00 by spring and then recovering once again to well over $15.00 by the
second half of the year. As of now, it appears that the advanced Class III price rather than the
advanced Class IV price will be the mover of Class I prices most, if not all of 2008."
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/