December 2017 Dairy Situation & Outlook

Professor Bob Cropp’s 2017 December Dairy Situation & Outlook  full report is now available for download at UW Understanding Dairy Markets.  An exert follows below:

…Milk production changes in the major milk producing states overall slowed from changes in recent months. In the West Arizona had a strong increase of 4.3%, but production was down 1.1% in California and 0.6% in Idaho with New Mexico up 2.0% and Texas up 5.9%. In the Midwest Iowa had a relatively strong increase of 3.7%, but Minnesota was up just 1.5% and Wisconsin up 0.9% with no change in South Dakota. In the Northeast, production was down 0.3% in New York, and up 2.2% in Pennsylvania and 2.2% in Michigan…It now looks like we will see Class III prices in the $14’s for the first half of the year and Class IV in the $13’s. Current Class III futures even has Class III in the $13’s February and March. But, with milk prices this low milk production may moderate the second half of the year. We can expect milk prices to improve for the second half of the year with Class III in the $15’s and Class IV in the $14’s with possible $15’s last quarter. If prices end up at these levels, Class III would average for the year about $1 lower than 2017 at $15.20. The Class IV price would average about $0.85 lower at $14.30…

 Also, for a video podcast including Dr. Bob Cropp and Dr. Mark Stephenson discussing the  Dairy Situation & Outlook, please visit Program on Dairy Markets & Policy.

For more information regarding dairy markets, please contact UW-Extension Dairy Markets Specialist Brian Gould or visit UW-Extension Understanding Dairy Markets.

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