Milk Prices On The Rebound

Milk Prices On The Rebound

Even though U.S. milk production surged 2.5% in October, shrinking production in other regions of the world and increasing global demand mean milk prices likely will improve significantly in 2017. USDA is projecting about $1/cwt increase in the All-Milk Price in 2017. “The average Class III for the year could be near $16.50, a good improvement over last years expected $14.75," reported a Wisconsin economists.

Also, the economists are optimistic about U.S. prices, especially later in the year. “We see continued pressure for a little bit of time,” he says. “We expect a short-term increase in prices, followed by a flat period and a slight uptick in late 2017.” Rabobank forecasts show Class III milk reaching $17.77 by the third quarter of 2017. 

Despite this optimism, there are five wild cards dairy farmers need to watch as they enter 2017 and contemplate risk management options for the year.  Click here to read what these wild cards are for 2017.

Tags: Milk Prices