Article: Class III milk prices expected to break $14/cwt.(An update of dairy industry news)

After languishing at $9-10/cwt. for months, Class III milk prices suddenly strengthened and are expected to reach $14/cwt. by this fall. The price increase was driven by higher cash market cheese prices.

Sensing a milk shortage in California due to heat stress, cheese buyers in Chicago, Ill., bid up block cheese prices from $1.08-1.14/lb. during the first six months of the year to $1.60/lb. by the end of July.

Dairy producers are relieved that higher prices are in sight. The U.S. Department of Agriculture announced Aug. 1 that the Class III, price rose from $9.75/cwt. in June to $11.78/cwt. in July.

Dairy producers will see this $2/cwt. price ...

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