As the dairy industry moves through the spring flush, we find ourselves wondering where the bottom will be for milk prices. We would also like to know whether the more optimistic futures prices in the second half of the year represent an opportunity to secure favorable prices.
Class III milk prices have had a rough start this year. March posted the highest price so far at $16.34 per hundredweight (cwt.), but April seems poised to fall back into the mid-$15 range. Class IV prices have fared considerably better, but Class IV is less impactful for most producers, especially if that higher-valued Class IV milk is opportunistically depooled.
The good news is that markets look ready to improve from here. April will be another tough month for milk prices, but beyond that, futures are showing about a $3/cwt. improvement from current levels.
Ben Laine
May 8, 2024
