Professor Emeritus Believes Stronger Milk Prices Are Coming

Thursday, April 22nd, 2021 -- 10:00 AM

(Wisconsin Ag Connection) The re-opening of restaurants and schools, along with continued government purchases for food programs, are prompting stronger milk prices this spring.

According to the Wisconsin Ag Connection, that's the assessment of Dr. Bob Cropp with the University of Wisconsin-Extension. In his monthly Dairy Situation and Outlook report, the professor emeritus said dairy product prices continued to show strength during April, despite the market seeing increases in milk production on the farm level.

He expects to see the April Class III price to be around $17.70 compared to $16.15 for March. The April Class IV price is also expected to rise by more than a dollar to $15.50.  The summary further claimed that the economy will be a major driver in the dairy markers in the months ahead.

In the U.S., consumers are expected to travel more in 2021 and spend more of their disposable income doing recreational activities.  But the world economy is also looking strong, which could lead to higher export demand.

He adds that the Class III futures have been somewhat volatile during the past month with Class III at times in the $17s and in the $19s. Cropp says that unless milk production ends up lower than what USDA is forecasting, he does not expect Class III futures to go beyond the $19 range before the end of the year.

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