Kelly Manufacturing



National & World Ag News Headlines
Dr. Cropp: Milk Prices on Path to Slow Recovery
USAgNet - 04/26/2018

One of Wisconsin's top experts in dairy market pricing says butter, cheese, dry whey and nonfat dry milk prices continue to average higher this spring. In his monthly Dairy Situation and Outlook Report, University of Wisconsin Professor Emeritus Dr. Bob Cropp noted that higher product values will help the April Class III milk price to inch-up toward the $14.50 range. That's compared to $14.22 for March and the low of $13.40 for February.

"The combination of higher butter and nonfat dry milk prices will increase the April Class IV price to near $13.60 compared to $13.04 for March the low of $12.87 for February," Cropp said. "Milk prices haven't been helped by the fact that milk production started the year well above a year ago. [But} butter, cheese and nonfat dry milk stocks have been increasing since last December."

In terms of fluid milk alone, Cropp points out that sales declined two-percent during 2017, while the growth in both butter and cheese sales were relatively weak. However, stronger economic growth is projected for this year.

"January through February sales of fluid milk were 1.1-percent lower than a year ago, but it is encouraging that domestic commercial disappearance increased 2.8-percent for butter, 4.3-percent for American cheese and 3.6-percent for other types of cheese."

Meanwhile, Cropp expects improved dairy exports to provide some optimism for better milk prices. He says exports have been running higher than a year earlier since July of last year.

"Dairy exports on a volume basis reached an all-time high in February due to increased exports to China, Southeast Asia, South America, Middle East/North Africa and Japan," he said.

As stated many times earlier, Cropp says production levels will be key in determining where prices will head from here. He points out that revised USDA figures show that milk output is slowing down, and milk cow numbers are dropping--especially in Minnesota and Wisconsin.

"It now appears the Class III price could be in the $15s by June and in the $16s by August or September, but still averaging for the year about a dollar lower than the $16.17 average last year," Cropp projects.


Other National Headlines
Hixwood Metal
E-Z Trail Farm Wagons
Copyright © 2024 - Farms.com. All Rights Reserved.