February 27, 2013 — Farm gate milk prices fell again. The Agriculture Department announced the February Federal order benchmark Class III price this afternoon at $17.25 per hundredweight, down 89 cents from January but still $1.19 above February 2012 and equates to about $1.48 per gallon. The two-month average now stands at $17.70, down from $16.56 a year ago and $15.24 in 2011.
Class III futures show more fall to come. The March contract settled Wednesday at $17.05. April settled at $17.10; May, $17.35; June, $17.65; July, $18.10; August, $18.32; with a peak for the year at $18.40 in September.
The Class IV price is $17.75, up 12 cents from January and $1.83 above a year ago.
The AMS-surveyed cheese price averaged $1.6623 per pound, down 8.6 cents from January. Butter averaged $1.5438, up 3.7 cents. Nonfat dry milk averaged $1.5559, down slightly, and dry whey averaged 63.93 cents, down 1.1 cent.
California’s comparable 4b cheese milk and 4b butter powder prices are scheduled to be announced by the California Department of Food and Agriculture on Friday.
Courtesy the Mielke Market Weekly