Missouri Dairy Business Update  
Volume 9, Number 9
September 2009

Milk Prices

According to Robert Cropp's Dairy Outlook, "USDA’s latest price outlook shows the recovery in milk prices to be a slow process. Class III futures also show a slow recovery. However, Class III futures showed improvement last week. September 18th Class III futures for December settled at $13.97, January 2010 at $14.03, July at $15.01 and December at $15.80. I remain more optimistic than this with the possibility of Class III above $14.00 by December, near $16 by July 2010, and in the high $16’s by December 2010. But, for these higher prices to occur milk production needs to continue to decline into 2010 and domestic sales needs to show improvement. History tells us that milk prices can increase rather quickly with anticipation of tightness in the market. So it is not without the possibility that prices could recover quicker and higher than this and that surely would be a great."

Milk Futures on the Chicago Mercantile Exchange
9-28-09
Sept Oct Nov Dec Jan 10 Feb Mar Apr May June
Class III $12.07 $12.62 $13.50 $13.98 $14.02 $14.24 $14.27 $14.16 $14.35 $14.65
Class IV $11.06 $11.35 $11.61 $11.81 $12.33 $12.37 $12.47 $12.47 $12.57 $12.82
Butter Futures $1.18 $1.26 $1.29 $1.31 $1.35 $1.35 $1.37 $1.37 $1.35 $1.39

Current USDA Milk Price Forecasts
9-17-2009
3rd Q 2009 4th Q 2009 1st Q 2010 2nd Q 2010
Class III Price $10.81 to $11.01 $11.50 to $12.00 $12.42 to $13.22 $13.17 to $14.17
Class IV Price $10.30 to $10.60 $10.60 to $11.20 $10.97 to $11.87 $11.94 to $13.04
Source: USDA, ERS, Livestock, Dairy & Poultry Outlook


Historical Missouri milk prices may be found at: http://agebb.missouri.edu/dairy/mkt/index.htm
 



Back to the Missouri Dairy Business Update Index