Milk prices for 2018 never saw a major rally and held below breakeven levels for many dairy farms around the country throughout the year. The price outlook for 2019 looks slightly better, but probably isn’t the level that producers would like to see.
When combining Class III and Class IV milk prices for 2019 the total price averages about $1/cwt higher than the last year, says Brian Rice, founder of brokerage firm Rice Dairy.
“So no major rally,” Rice says of the forecast. “A lot of times it is normal for the forward curve to carry a premium to the spot market, especially when we are low where we are (on price).”
In the short-term there doesn’t appear to be any big changes in the market, but if the steel and aluminum tariffs with China and Mexico is eventually called off it could give the market a boost.
For more on Rice’s thoughts about the milk market in 2019 watch the video above from AgDay.