Tip of the Month
July/August 2005
(Archive)

Milk Market at a Turning Point in Summer 2005
Ken Bailey
The Pennsylvania State University

The market is at a turning point where it is trying to digest new market information (fluid milk consumption up, culling down, productions per cow up, etc.) in order to know which direction future milk prices will be going.

If concerned, dairy producers can use the futures market to protect against any adverse price movements in the months ahead. Prices for Class III milk futures in Chicago are still almost $2 per cwt ahead of the 5-year average for Class III prices. Thus some price protection would make sense given the volatile nature of milk prices.

For the rest of the story click on
Ken Bailey's Summer Dairy Outlook Newsletter.