Class III | Dairy Report: Prices Move More Than 50% in a Matter of Months

It may be one of the fastest rallies in the history of tracking the milk market. We're talking about the price of Class III milk from April to June.

In April with issues with the supply chain and a sharp drop in price, many dairy farmers were forced to dump milk. The price dipping to as low as $10.39 per cwt. That’s a more than 40% drop from late January.

But earlier this month, July futures were trading at $19.60 per cwt. thanks to food service demand picking back up. That’s a more than 50% price move since late April.

Now, milk production and the all milk price are forecasted to be higher for 2020. USDA releasing new estimates in its latest World Agriculture Supply and Demand report.

It says milk production for the year is being raised from last month on higher expected cow numbers. USDA saying that the price forecasts for cheese, butter and nonfat dry milk are all raised from last month due to the recent price strength and stronger anticipated demand.

The all milk price forecast is now at $16.65 per cwt. for the year. And the price for next year is raised to $16.20 per cwt.

Dairy Report 061620

Look also

EU ombudsman launches inquiry into legality of farm subsidy amendments

The EU’s ombudsman has launched an inquiry into the Commission’s emergency amendments to the bloc’s agriculture subsidies…

You may be interested in

U.S. dairy fights back against Colombian milk powder tariffs

EU ombudsman launches inquiry into legality of farm subsidy amendments

Is there new hope for a farm bill?

Topics |
Class III, CWT, Dairy, Dairy prices, Dairy Reports

Legal notice about Intellectual Property in digital contents. All information contained in these pages that is NOT owned by eDairy News and is NOT considered “public domain” by legal regulations, are registered trademarks of their respective owners and recognized by our company as such. The publication on the eDairy News website is made for the purpose of gathering information, respecting the rules contained in the Berne Convention for the Protection of Literary and Artistic Works; in Law 11.723 and other applicable rules. Any claim arising from the information contained in the eDairy News website shall be subject to the jurisdiction of the Ordinary Courts of the First Judicial District of the Province of Córdoba, Argentina, with seat in the City of Córdoba, excluding any other jurisdiction, including the Federal.