The Agriculture Department announced the March Federal order Class III milk price at $16.25 per hundredweight, down 75 cents from February but $1.21 above March 2019 and the highest March Class III since 2014. But that’s where the good news ends. More bloodletting is to come, thanks to the ongoing COVID-19 outbreak. The three month average stands at $16.77, up from $14.30 a year ago and compares to $13.87 in 2018 but that average is about to fall as well.
Class III futures have been pulled sharply lower and Wednesday’s settlements portended an April price of $14.45; May, $13.12; and June at $13.56, with the peak in October of just $15.14.
The March Class IV price is $14.87, down $1.33 from February and 84 cents below a year ago and the lowest Class IV price since September 2018. Its three month average is at $15.91, up from $15.68 a year ago and $13.01 in 2018.
Courtesy: Mielke Market Weekly