Slowdown in milk output, strong cheese market boosts dairy price outlook.
A rise in Class III prices to $18 per cwt. is not out of the picture in the coming months, says Bob Cropp, dairy economist and professor emeritus at the University of Wisconsin-Madison.
Discussing the June 2012 Dairy Situation and Outlook in a podcast with colleague Mark Stephenson, Cropp says a slowdown in U.S. milk output, increased production of cheese, butter and nonfat dry milk, and rising exports have helped boost milk prices recently.
“So it looks like May’s milk checks could probably be the lowest of the year,” Stephenson says. Cropp agrees.
Cropp projects June’s Class III prices to average $15.65-$15.75, and says July’s prices could reach $17.00. The cheese market has climbed 12-13 cents from May.
Watch the 8-minute podcast here.