Professor Bob Cropp’s November 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.
Below are sections of that report:
As of now it looks like the Class III price maybe in the high $15’s at the start of 2017, in the low $16’s by the end of first quarter, in the mid-$16’s by second quarter, higher $16’s third quarter and with the $17’s as a possibility fourth quarter. The average for the year could be near $16.50, a good improvement over the expected $14.75 this year. This is more optimistic than USDA and some other forecasters are forecasting. USDA has the Class III averaging from $15.30 to $16.20. But, final milk prices will be subject to any rather small changes in milk production, sales, or exports.