The Federal order benchmark Class III milk price ends 2020 sharply lower and well below that of a year ago. The Agriculture Department announced the December Class III at $15.72 per hundredweight, down $7.62 from November, $3.65 below a year ago, and the lowest Class III price since May. That put the 2020 average at $18.16, up from $16.96 in 2019 and $14.61 in 2018.
Wednesday’s Class III futures had the January contract at $16.06; February, $17.91; March, $17.79; April $17.54; May, $17.50; June, $17.33; July, $17.37; August, $17.39; September, $17.56; October, $17.32; November, $17.17; and December at $17.13, which would portend a $17.34 average in 2021. The USDA’s latest prediction for 2021 was $15.60.
The December Class IV price is $13.36, up 6 cents from November, $3.34 below a year ago, and the lowest December Class IV price since 2008. Its 2020 average is $13.49, down from $16.30 in 2019 and $14.23 in 2018. The USDA is projecting a 2021 Class IV average of $13.60. Courtesy of Mielke Market Weekly
