High Class III prices, depooling lead to negative PPDs
Milk pricing in federal marketing orders is complicated under normal circumstances, but many dairy farmers have been bewildered by milk checks that didn’t reflect the soaring Class III prices they expected in their pool’s blend price.
Class III Milk Futures Surged Higher Following Friday’s Limit Move
Blocks and barrels remained steady in the CME Cash Dairy Product Trade. The block/barrel average is $2.61/lb.
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.
Class III futures take a big fall thanks to virus outbreak
Federal dairy industry officials have lowered the forecast for 2020 milk prices. Milk prices in 2019 improved considerably over 2018 with Class III averaging $16.96 compared to just $14.61 for 2018. Earlier forecasts had 2020 milk prices averaging as much as $1 or more higher than 2019.
Class III benchmark milk price hits five-year high
The October Federal order Class III benchmark milk price hit a five-year high this week at $18.72 per hundredweight, up 41 cents from September, $3.19 above October 2018, and the highest Class III since November 2014.
Uptick in cheese prices, exports boost Class III milk prices
Lower cheese production and tightened inventories combined with a modest growth in sales and exports, pushed cheese prices up to a five-year high at $2.35 lb. for 40-lb. blocks on the Chicago Mercantile Exchange.
Class III milk on trajectory for improvement
Things may be starting to look up a bit for dairy producers. The base price for Class III milk in March, revealed in the April 3 class and component price announcement by the U.S. Department of Agriculture, is $15.04 per hundredweight.
