The nation’s benchmark milk price reversed two months of decline in February but still has a ways to go to return profitability to most U.S. farms. The Federal order Class III price was announced at $16.08 per hundredweight, up 91 cents from January but still $1.70 below February 2023.
Late Friday morning futures portend a March price at $16.77. April was at $16.74, May at $17.19, June at $17.74, July at $18.05, August at $18.49, September at $18.71, October at $18.78, November at $18.65 and December was at $18.10.
The plunge in whey prices this week and butter’s descent is pressuring the futures markets. The Class III breakeven price varies widely and is dependent on a number of factors but currently ranges $18 to $22 per hundredweight.
Lee Mielke
Farmers' Advance
March 4, 2024
