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Article: High milk prices are unsustainable in 2006.
- Article from:
- Feedstuffs
- Article date:
- January 9, 2006
- Author:
CopyrightCOPYRIGHT 2006 Miller Publishing Company, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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For all of 2005, the Class III price of milk averaged $14.09/cwt., more than $1/cwt. above the five-year average. Since Class III prices averaged $15.40/cwt. the prior year, can prices remain at above-average levels in 2006? The odds are that prices will decline to average levels.
Cyclical U.S. milk prices
Milk prices in the U.S. have been cyclical in nature and respond to sustained changes in supply and demand. Both the production of milk and demand for dairy commodities exhibit clear seasonal patterns. There are also variations from those seasonal patterns. It is these sustained changes from the seasonal patterns that cause milk prices to vary from ...