Reasons for Optimism
Milk futures prices on the Chicago Mercantile Exchange (CME) are showing more movement recently, with the average Class III milk price for the next 12 months averaging $16.53 per hundredweight as of May 8th. That’s up about $1.70 per cwt. from where Class III milk prices averaged the past 12 months. Class IV milk futures prices for the next 12 months average $17.14 per cwt., up $2.06 per cwt. from the average of the announced Class IV prices for the past 12 months.
Analysts are starting to cite the positive momentum in most dairy commodity markets as a reason for optimism, with domestic prices for butter and cheese both ticking upwards in recent weeks. Global prices are also rebounding, with the dairy price index on the Global Dairy Trade being an indicator of the world market. The average dairy price index on the latest GDT session was up 0.4 percent, marking 11 sessions of increased prices.