Summer Milk Prices Vary Wildly, Making Forecasting Difficult

Milk price forecasting is a challenging endeavor, particularly for the U.S. and New Zealand this year. Midpoint prices have ranged generally over the summer in both countries, but eyes are on the high and low points which have swayed significantly.

Class III milk high point forecast had been $19.31 over the summer and $21.11 for average test milk. On the low side, $8.75 was seen when the prediction was originally $16.48. By August, U.S. milk prices had fallen to $8.50. Looking ahead, Class IV futures have held strong on the CME for both September and October contracts.

Read more on milk prices and forecasting here.