July 22, 2020: Dairy Week In Review

Class III prices for the next three months average $22.99 per hundredweight, while Class IV prices average $14.07 per cwt. This dramatic difference between Class III and Class IV prices is resulting in negative Producer Price Differentials for dairy farms. Simply put, PPD is the relationship of Class III value relative to the value of the other three milk classes. The June settlement check farmers received last week had a significantly negative PPD because of the higher June Class III price relative to the Class IV and Class I base price announced for June. This weighed on the final mailbox price for June and will continue to do so in coming months. Read More