November 4, 2011
Wisconsin farmers are expecting a decrease in milk prices of US$1.40 per 100 pounds of milk in October, according to monthly report issued Wednesday (Nov 2).
October's average price for the state's dairy farmers is expected to come in at US$19.80 per hundredweight in October, down from US$21.20 in September, according to the report from the Wisconsin field office of the National Agricultural Statistics Service.
Final numbers for October will be issued in a few weeks.
The Wisconsin price was US$18.80 per hundredweight in October 2010. Wisconsin's price is projected to be US$0.10 less than the national average of US$19.90 per hundredweight.
The dip in prices is attributed to increased production through August and September coupled with "softness" in both domestic sales and international exports of dairy products, Bob Cropp, University of Wisconsin Cooperative Extension dairy market expert, wrote in his October Dairy Situation and Outlook.
"Unless dairy exports decline significantly, and this is not anticipated, there is a good probability milk prices could strengthen and be higher than what Class III futures are now showing by the second and third quarters of 2012," Cropp wrote. "But the US$20 Class III prices experienced this year are not likely in 2012."
Class III milk is generally used for cheese production. Class III futures for January opened trading Wednesday on the Chicago Mercantile Exchange at US$16.90 per hundredweight.