Financial relief is coming slowly to U.S. dairy farms. The Agriculture Department announced the November Federal order Class III milk price at $17.15 per hundredweight, up just 31 cents from October but $3.86 below November 2022 and the lowest November Class III since 202018. That put the year’s average at $17.11, down from $22.09 in 2022, but compares to $16.96 in 2021. 

Unfortunately, Wednesday’s Class III futures portend a December price at $16.11, down $1.00 from November’s price and would put the year’s average at $17.03, which would be down from $21.96 in 2022, and compare to $17.08 in 2021. 

The January Class III was at $16.22; February, $16.75; and March at $17.31, with a peak of $18.68 in October. 

The November Class IV price is $20.87, down 62 cents from October, and $2.43 below a year ago. The year’s average is at $19.11, down from $24.68 a year ago, but compares to $15.74 in 2021. Courtesy of the Mielke Market Weekly

Dairy farmers aren’t out of their financial woes yet. The Agriculture Department announced the October Federal order Class III benchmark milk price at $16.84 per hundredweight, down $1.55 from September, driven primarily by a sharp drop in cheese prices. It’s a woeful $4.97 below October 2022 and the lowest October Class III since 2018. The year has seen a high of $19.43 in January and a low of $13.77 in July. 

Class III futures portend a turnaround next month but not by much. The November contract settled Wednesday at $17.24 per cwt.; December, $17.13; January 2024, $17.34; February $17.76; and March at $18.14, all in the right direction but still short of profitability for most. 

The ten month Class III average stands at $17.10, down from $22.20 at this time a year ago and compares to $16.86 in 2021. 

The October Class IV price is $21.49, up $2.40 from September, thanks primarily to the record breaking butter price, but is $3.47 below a year ago, yet the highest Class IV price since December 2022. Its ten month average is at $18.93, down from $24.82 a year ago and $15.44 in 2021.
Courtesy of the Mielke Market Weekly

The Agriculture Department announced the November Federal order Class I base milk price at $19.75 per hundredweight, up 28 cents from October, $4.34 below November 2022, and the highest Class I since February. It equates to $1.70 per gallon, down from $2.07 a year ago. The average stands at $19.15, down from $23.76 a year ago and compares to $16.61 in 2021. Courtesy of the Mielke Market Weekly

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The Agriculture Department announced the August Federal order Class III milk price at $17.19 per hundredweight, up $3.42 from July but $2.91 below August 2022 and the highest Class III since April. The eight month average stands at $16.98, down from $22.54 at this time a year ago, and $16.78 in 2021.

Wednesday’s Class III futures settlements portend a September price at $18.87; October, $18.95; November, $18.54; December, $18.52; January 2024, $18.40; February, $18.39; and March at $18.41 per cwt. 

The August Class IV price is $18.91, up 65 cents from July but $5.90 below a year ago, and the highest Class IV since January. Its eight month average is at $18.59, down from $24.83 a year ago and compares to $15.12 in 2021. Courtesy of the Mielke Market Weekly

The July Federal Order Class III benchmark milk price fell to $13.77 per hundredweight, down $1.14 from June, $8.75 below July 2022, and the lowest Class III price since May 2020. That put the seven month average at $16.95, down from $22.89 at this time a year ago and compares to $16.90 in 2021.

Class III futures portend an August price at $17.49; September, $17.53; October, $17.97; November, $18.22; and December at $18.22.

The July Class IV is $18.26, unchanged from June but $7.53 below a year ago. Its average stands at $18.55, down from $24.83 a year ago and compares to $15.01 in 2021. Courtesty of the Mielke Market Weekly