Milk prices have been good. But think of the volatility we could experience, especially as next year rolls around and production becomes more critical to ensure we do not run out of corn.
September was a brutal month as far as Class III futures prices are concerned. Contracts fell almost on a daily basis with only a few brief rallies, know as a "dead cat bounce," taking place.
Traders became bearish as their perceptions of price potential dimmed. The October contract fell $1.18, November declined $1.97 and December declined $1.66 for the month. Contracts for the first half of 2012 declined as well, but not to the extent these three contracts did. Second-half contracts for next year remained fairly stable.