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Farm News: USDA Says March Milk Price Down

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Posted: 04.05.2010

The March Federal order benchmark milk price dropped $1.50 Friday as the Agriculture Department announced the Class III manufacturing grade milk price at $12.78 per hundredweight (cwt.) or $1.09 per gallon.

That’s milk price is still $2.34/cwt or 20 cents per gallon above the level it was a year ago but $5.22/cwt. or 44 cents per gallon below March 2008.  This latest USDA announcement pulls the 2010 average down to $13.85/cwt. or $1.19/gallong. That compares to $10.18 at this time a year ago and $18.12 in 2008. The Class IV price, milk used for soft products like ice cream, is $12.92, up 2 cents from February, and $3.28 above a year ago.

 

What's ahead?  Analysts say the Class III futures portend another small drop in April, which settled Thursday at $12.72. May rebounds to $13.28, June $14.00, and July at $14.49, with a peak of $15.08 in September before beginning the traditional seasonal decline.

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