Tip of the Month
January/February 2005
(Archive)

Contract Some Milk
Ken Bailey
The Pennsylvania State University

The CME Class III futures reacted in lockstep with the cash market. As of January 21, 2005 the Class III futures averaged $14.23 for all of 2005. If you believe that the milk supply will eventually increase due to these very high milk prices, then dairy producers may want to consider locking in some of their milk production. If a major price adjustment were to occur, at least part of a producers milk supply would be protected. These are very attractive prices (for dairy producers) in a year following record high prices!!!!!!!

For the rest of the story click on
Ken Bailey's 01/25/05 Weekly Dairy Market Outlook.