Peak Forage Products



Wisconsin Ag News Headlines
Strong Supplies Keeping Dairy Prices Surpressed, Cropp says
Wisconsin Ag Connection - 03/22/2017

Steady increases in overall milk production and higher cheese stocks have resulted in another decline in dairy product prices in March. But Dr. Bob Cropp from the University of Wisconsin-Extension says there may be a silver lining found in butter and dry whey. In his monthly Dairy Situation and Outlook report, the professor emeritus said butter has remained well above $2.00 per pound, while dry whey held steady around 50-cents per pound.

"Milk production will increase during the spring flush and likely will push milk prices lower," Cropp projected. "We can expect the Class III price to be in the low $15s and the Class IV price in the low $14s for the months of April and May. But, with continued favorable butter and cheese sales along with continued improvement of dairy exports, milk prices should trend back upward after that."

He says the Class III price could be back to the $16 mark by June and reach into the high $17s in the fourth quarter. Cropp also foresees the Class IV price rising to over $15 during the second half of the year.

"Currently, dairy futures are not that optimistic. Class III futures don't reach the $16s until July and stay well below the $17s for the remainder of the year," he said. "Class IV futures don't reach the $15s until August."

Cropp adds that it may take a while longer before we see how domestic sales, milk production and exports will turn out in 2017. Right now, the USDA is forecasting a 2.4 percent increase in milk production for the year from an expected 52,000 more cows in the state's dairy herd. And that means strong domestic sales and continued improved exports will be necessary to reach the high $17s for Class III milk.


Other Wisconsin Headlines
Sturdy-Built Mfg.
Professional Dairy Producers Foundation
Copyright © 2024 - Farms.com. All Rights Reserved.