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October 13, 2020

September PPDs Again Negative

 |  By: Jim Dickrell

Early reporting Federal Milk Marketing Orders indicate that September Producer Price Differentials (PPDs) will again be negative.

The good news is that September PPDs are not be as deeply negative as they were this summer. But as PPDs head north, blend prices head south.

The Central Federal Milk Marketing Order reports its September PPD is -72₵/cwt, with Class III utilization at just 6.2%. The statistical uniform price, or blend price, in the Central Order is $15.71/cwt for September. The August PPD in the Central Order was -$3.62 and the blend price was $16.15/cwt.

The Upper Midwest Order’s PPD is -46₵ for September, with Class III utilization at roughly 50%. The blend price in the Upper Midwest Order for September is $15.97/cwt. The Upper Midwest PPD in August was -$2.06 and the blend price was $17.71/cwt.

Other Federal Orders will report their September PPDs this week or next as they complete their Class utilization calculations.