Upper Midwest June PPD Announced at -$3.81
The Midwest Federal Milk Marketing Order announced the June Producer Price Differential (PPD) at -$3.81 over the weekend, not nearly as bad as the Central Order’s -7.51 announced Friday.
Nevertheless, it was a big negative number, resulting in a Statistical Uniform Price of $17.23/cwt. at 3.5% butterfat. The good news is the Statistical Uniform Price in the Upper Midwest in June was up more than $5 from May, when it came in at $12.31.
Neither the Southwest nor the Mideast Orders fared as well. The PPD in the Southwest Order for June was -$7.62/cwt, down from +$0.87 in May. The June Southwest Statistical Uniform Price was $13.42/cwt. In the Mideast Order, the June PPD was -$7.05 with a Statistical Uniform Price coming in at $13.99/cwt.
Like the Central Order, there was major depooling in the Upper Midwest in June as a result of inverted pricing. Just 542 million pounds of Class III milk was pooled on the Upper Midwest Order in June, down from 2.33 billion pounds in May. Class III utilization fell from 83.9 percent in May to 49.9 percent in June.
Total producer milk in May totaled 2.78 billion pounds in the Upper Midwest. In June, that number was just 1.09 billion pounds, leaving that many fewer pounds of milk to support Class I prices. You can view the June Upper Midwest PPD calculation here.