Gould: MILC payment estimates updated

Brian Gould, University of Wisconsin-Madison Department of Agriculture and Applied Economics professor, updated estimated Milk Income Loss Contract (MILC) program payments, based on MILC-related futures contracts as of July 5. According to the estimates, MILC payments will now peak in July, at about $1.58/cwt., dropping to about 95¢/cwt. in August. Estimates are always subject to change. To see a new summary spreadsheet, go to the UW-Madison “Understanding Dairy Markets” website: http://future.aae.wisc.edu/collection/software/current_MILC_est.xls.

 

 

2012-2013 MILC payment forecasts

 

2012 MILC payment forecasts (and actual payments*)

based on futures settlement prices, July 5, 2012

                          ($ per hundredweight)

                  Forecast                     Predicted 

                    Target     Forecast      MILC

Month         Mover       Mover       Payment

Jan. ’12        17.53*        18.80*        0.0000*

Feb. ’12        17.90*        17.03*        0.3895*

Mar. ’12        18.14*        16.30*         0.8262*

Apr. ’12        18.35*         15.66*         1.2110*

May ’12         18.55*        15.85*         1.2164*

June ’12       18.14        15.24*           1.3043

July ’12        19.02        15.51*           1.5817

Aug. ’12       18.88        16.76             0.9529

Sep. ’12        15.80        17.48            0.0000

Oct. ’12         15.80        17.87           0.0000

Nov. ’12        15.82        17.85            0.0000

Dec. ’12         15.80       17.60             0.0000

Jan. ’13         15.80       17.40             0.0000

Feb. ’13         15.82       17.20            0.0000

Mar. ’13         15.85        16.85           0.0000

*Actual Target, Target Mover, MILC Payment

Brian W. Gould, Associate Professor, Department of Agricultural and Applied Economics, University of Wisconsin-Madison ( http://future.aae.wisc.edu/collection/software/current_MILC_est.xls)