Dairy farmers were asked to lower milk production and some were asked to dump milk. The Class III price is driven by the cheese price. AMPE rose by 0.2ppl (1%) in October, with lower butter prices but higher SMP prices. The impact of the adjustment of AMPE and MCVE following the. Milk cow numbers declined by 11,000 head from April to May and by 15,000 head March to May.

By May 15th and into June the Farmers to Family Food Box Program kicked in and the government bought rather large quantities of milk and cheese. But prices should remain rather strong for the next 2 or 3 months at least.

But milk production was up by 4.8% in Idaho, 4.6% by Oregon, 2.1% in Kansas and 9.7% in South Dakota.

Differences will arise due to the markets in which milk buyers operate as well as the mechanism they use to set the milk price. Hopefully, dairy farmers do not respond to higher milk prices by increasing production again. The big question is how long can these milk prices hold? Dairy futures currently are rather optimistic. © 2020 www.wisfarmer.com.

These will impact the timing of price movements as well as the size of the change. Milk per cow averaged 1.1% higher, netting an increase in production of just 0.3%. With people staying at home retail sales of milk, cheese and butter increased. USDA has announced it will extend purchases of dairy products under the Food Box Program in July and August which would be positive for milk prices.

Markets Home ... real-time market data feeds. Both had reduced cow numbers with California down 4,000 head and Wisconsin 12,000 head. Nonfat dry milk was as high as $1.24 per pound in January and fell to $0.80 in April and rebounded to a high of $1.05 in June and is now $1.02. The two leading dairy states California and Wisconsin had lower milk production of 1.5% and 3.1% respectively. South Dakota had added 11,000 cows. Class III futures is $20 in July, $18’s in August, high $17’s in September before trailing off to the $16’s by November and December.

Find information for Class III Milk Futures Quotes provided by CME Group. Cropp is Professor Emeritus at the University of Wisconsin Cooperative Extension, University of Wisconsin-Madison.

Cheddar barrels were as high as $1.50 per pound in January, got as low as $1.00 in April and as high as $2.425 in June and is now $2.28.

So, there is a lot of uncertainty as to milk prices for the remainder of the year. The Class IV price is driven by the price of butter and nonfat dry milk. Other factors which are likely to impact milk prices will be the degree of competition for milk in the market, changes to available processing capacity, import competition and contract negotiations.