Professor Bob Cropp’s August 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 Dairy Situation & Outlook, please visit Program on Dairy Markets & Policy.
As Prof. Cropp notes:
Milk prices continue to show strong recovery from the lows in April and May. The August Class III price will be near $17, about $1.75 higher than $15.24 in July and about $4.25 higher than $12.76 in May. Higher Class III prices are driven by much higher cheese prices and some improvement in dry whey prices. Cheese prices are the highest since November of 2014.…Whether cheese prices hold at these improved levels and supporting higher Class III prices will depend a lot upon the level of milk production as well as continued strong sales. Milk production for the month of July was 1.4% higher than last year driven mainly by improved milk per cow, up 1.2%. Cow numbers increased two months in a row with July numbers up 2,000 head from June….