Markets & Management

After several years of low to borderline milk prices, current market conditions show significant improvement to milk prices as we begin 2022. Milk futures on the Chicago Mercantile Exchange  (CME) are showing the highest Class III and IV prices since 2014. The Class III price in 2014 averaged $22.34 per cwt and Class IV averaged $22.09. Class IV and III milk prices inversed in  November 2021 with Class III settling at $18.03 per cwt, and Class IV settling 76 cents per cwt higher at $18.79. The gap widened in December with Class IV settling at $19.88 per cwt, $1.52 higher than the $18.36 per cwt Class III settled price. According to the futures market at the end of business on January 18, Class IV is expected to remain higher than Class III all next year. The current Class III milk futures market averages $21.30 per cwt, $1.04 per cwt less than 2014, and Class IV averages $22.42, 33 cents per cwt higher than 2014. Read More