Milk Prices Hit Two-Year High In December
Despite all of the winter aches felt on dairies as snow, ice and frigid temperatures hit most of the country, producers can take comfort in improving milk prices. According to USDA, December Class III milk prices hit a two-year high at $17.40 per CWT. That’s nearly $3 more than a year ago and well above the 2016 average of $14.87 per CWT. USDA says Class IV prices also rallied in December to near $15.
Milk wasn’t the only market that rallied at the end of the year says Brian Doherty of Stewart-Peterson. He says the stock market moved higher, and consumers were liberal with Christmas and restaurant spending. Grocery store orders of dairy products also increased signaling strong domestic demand.
“There’s good demand underpinning the market and declining world supply,” Doherty says. “The question is can that last into the year ahead? We’re cautious with that.”
Watch video from AgDay TV below: