Professor Bob Cropp’s March 2016 Dairy Situation & Outlook full report is now available for download at UW Understanding Dairy Markets. Also, for a video podcast including Dr. Bob Cropp and Dr. Mark Stephenson discussing the March 2016 Dairy Situation & Outlook, please visit Program on Dairy Markets & Policy.
The following is an excerpt from Dr. Cropp’s outlook report:
With anticipated milk production and dairy exports not expected to show much improvement until late in the year, USDA and other price forecasters have revised downward milk prices for the year. USDA forecasts the Class III price to only average $13.60 to $14.20 compared to $15.80 last year. The forecast for the average ALL Milk Price is $14.95 to $15.55 compared to $17.08 last year. Current Class III futures are not any more optimistic with Class III in the $13’s until August and then in the $14’s for the remainder of the year and the first half of 2017. But, I think milk prices still have a good chance of turning out somewhat better than this. Milk production may not increase as much and exports could improve more than now anticipated during the second half of the year. We could see the Class III in the $14’s by May, the $15’s by July and the $16’s by September or October and average near $15 for the year with the All Milk Price averaging near $16.30.