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Article: Consider strategy for locking in 2002 milk prices. (Dairy Industry Insider).(milk price forecast)(Industry Overview)(Statistical Data Included)
- Article from:
- Feedstuffs
- Article date:
- December 10, 2001
- Author:
CopyrightCOPYRIGHT 2001 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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The U.S. Department of Agriculture released its forecast of milk prices for 2002 the last week of November. The results of this forecast are presented in Table 1. This forecast assumes a generally weak U.S. economy, milk production growth of 2.7% and growth in demand for dairy products of less than 2% in 2002. The result that is farm-gate milk prices are expected to decline almost $2/cwt. relative to 2001.
The prognosis for weaker milk prices is already apparent. USDA announced that the December 2001 Class I mover for fluid milk in all federal orders would decline $3.78/cwt. from the prior month to $11.98/cwt. (Note that the Class I differential is added to this ...