Dairy Week In Review

USDA announced the September Class III price at $18.39 per hundredweight, up $1.20 from August but $1.43 from a year ago. October’s price is the third highest Class III price for the year. Looking ahead, Class III futures prices on the CME fall below $17 for October with the last quarter of 2023 averaging only $17.19 per cwt. They don’t go above $18 again until February 2024. USDA announced the September Class IV price at $19.09, up 18 cents from August but $5.54 below year ago levels. September’s Class IV price is the second highest in 2023. Looking ahead, Class IV milk futures prices on the CME increase in the fourth quarter, averaging $20.72 for the last three months of the year. Class IV futures prices remain above $19 per hundredweight through the first ten months of 2024, based on the CME settlement prices on October 11.

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