April 5, 2013 — Farm milk prices have slipped a little more but have likely bottomed out for 2013. The Agriculture Department announced the March Federal order Class III manufacturing grade milk price on April 3rd, at $16.93 per hundredweight (cwt.), down 32 cents from February but $1.21 above March 2012, $1.91 above California’s 4b cheese milk price, even with the state’s temporary price increase, and equates to about $1.46 per gallon. The March Class IV price is $17.75, unchanged from February and $2.40 above a year ago.
Looking ahead, the April Class III futures contract settled Wednesday at $17.42; May, $18.40; June, $19.40; and peaked at $19.46 in July and August. The 2013 Class III average now stands at $17.44, up from $16.28 at this time a year ago, and compares to $16.63 in 2011 and $13.85 in 2010. The 2013 Class IV average now stands at $17.71, up from $15.94 a year ago, and compares to $18.08 in 2011 and $13.22 in 2010.
The AMS-surveyed cheese price averaged $1.6467 per pound in March, down 1.6 cents from February. Butter averaged $1.6146, up 7.1 cents. Nonfat dry milk averaged $1.5208, down 3.5 cents, and dry whey averaged 60.48 cents, down 3.2 cents from February.
Courtesy of Mielke Market Weekly