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October FO Class I Up 4¢

October FO Class I Up 4¢
The Agriculture Department announced the October Federal order Class I base milk price this afternoon at $19.20/cwt., up 4¢ from September, 32¢ above October 2012, the highest since December 2012, and equates to about $1.65/gal. The 2013 Class I average now stands at $18.55, up from $16.74 at this time a year ago and compares to $19.26 in 2011, $15.00 in 2010, and $11.09 in 2009.

USDA dairy outlook: Again, USDA’s Dairy Outlook mirrors the numbers and themes in last week’s World Ag Supply & Demand Estimates (WASDE) report. In its sequestration-abbreviated outlook released on Sept. 18, USDA fractionally-reduced projected 2013 milk production estimates by 300 million lbs. from a month earlier, but kept 2014 production estimates unchanged. The small reduction in current year production is predicated on slightly lower production in the third quarter, based on hot weather reducing production in western States, partly offset by continued production growth in the Midwest and Eastern states. There is no basis for changing the 2014 production forecast. Milk production is forecast to climb in 2014 compared with this year on moderating feed prices and higher milk prices. Higher exports of cheese, butter, and nonfat dry milk and tighter stocks support the increased milk prices in 2014.

 

  • 2013 production and marketings were projected at 201.8 billion lbs. and 200.8 billion lbs., respectively. If realized 2013 production and marketings would be up about 1.5% from 2012.
  • 2014 production and marketings were projected at 204.5 billion lbs. and 203.6 billion lbs. respectively. If realized, 2014 production and marketings would be up about 2.7% from 2013.

To see quarterly and annual USDA milk price projections, along with closing prices on the Chicago Mercantile Exchange for the same day, click here.

 

Quarterly and annual milk prices and projections

Year             All milk                 Class III       Class IV

2009

12.83

11.36

10.89

2010

16.26

14.41

15.09

2011

20.14

18.37

19.04

2012

18.53

17.44

16.01

2013

 

 

 

  Q1

19.50

17.44

17.71

  Q2

               19.57

  18.04

18.82

  Q3

19.35-19.55

17.75-17.95

18.95-19.25

  Q4

20.45-20.95

18.40-18.90

19.25-19.85

Year

19.70-19.90

17.90-18.10

18.60-18.90

2014

 

 

 

  Q1

19.45-20.25

17.00-17.80

18.30-19.20

  Q2

19.15-20.15

17.20-18.20

18.30-19.40

Q3

 

 

 

Q4

 

 

 

Year*

19.35-20.35

17.05-18.05

18.45-19.55

 

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