Finally, milk prices projected higher

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

After five months of downward revisions, there is an uptick in the U.S. Department of Agriculture’s predictions for 2012 milk prices.

This morning, the USDA said Class III milk prices will average between $16 and $16.30 per hundredweight this year, up from its prediction of $15.75 to $16.15 last month.

The all-milk price is projected at $17.05 to $17.35 ― again, higher than last month.

Milk prices are projected up on tighter supplies.

"The milk production forecasts for 2012 and 2013 are reduced from last month as higher forecast feed prices are expected to pressure producer returns and encourage a more rapid decline in the cow herd," according to the USDA "World Agricultural Supply and Demand Estimates" report this morning. 

Indeed, the report had some bad news on the feeding front.

Corn will be more expensive.

The average price of corn for the year beginning Sept. 1, 2012, will be between $5.40 and $6.40 per bushel, the USDA says. That is significantly higher than the $4.20 to $5 range predicted just a month ago.

In the last month, drought conditions have emerged across the Corn Belt, which has generated a certain amount of pessimism. The USDA now thinks the corn crop will yield 146 bushels per acre, on average, compared to the 166 bushels it was predicting in the June report.

Comments (6) Leave a comment 

e-Mail (required)


characters left

mike richter    
illinois  |  July, 11, 2012 at 10:01 AM

Milk price predicted to go up 50 dollars per cow if your at us avg of 20000lbs per cow. corn costs alone forcasted to go up 100 dollars per cow. good news for milk price but not good enough to keep you solvent!

MA  |  July, 11, 2012 at 11:30 AM

Got Ethanol....?

Virginia  |  July, 11, 2012 at 05:13 PM

Small increases in milk prices are a joke. We are way behind and it's gonna take more real increases.

Pennsylvania  |  July, 11, 2012 at 08:14 PM

When will our country wake up and realize that corn and beans are food and not fuel. Here in the northeast there is so much natural gas being produced the price fell to record lows. We also have lots of coal. Lets use these non edibles as fuel, besides coal and natural are not very tasty.

MN  |  July, 12, 2012 at 02:05 AM

Until they run out of milk in the stores no one will care about the losses we are incurring. Maybe they can put ethanol on their cereal then....We need our processors to pursue more exports but with their guarenteed profits they have no incentive to do it. Our entire pricing system needs to be blown up. I have participated in the LGM for the last two years and still isn't paying anything. Another government rip off program. How high does feed have to go and milk lower before it pays? The only ones benefiting are those selling it to us....

Tyler Sorensen    
Utah  |  July, 12, 2012 at 07:41 PM

Well hit it right on the head.


When moving hay to feed dairy cows, farmers are seeking a versatile tractor. KITOI’s new Tier 4 RX series tractors ... Read More

View all Products in this segment

View All Buyers Guides