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CoBank's Corey Geiger reports that spot Class III milk in the Upper Midwest averaged $2.63 per cwt over class, the highest midpoint since February 2019, with some trades reaching $3.50 the week before. Milk production has been down for 13 straight months, and August Class III futures closed at $20.66 on August 23.
Premiums above Class III signal tight raw milk supply and strong processor demand, which supports dairy prices and the feed demand that depends on them.
hoards.comCorey Geiger, CoBankAug 26, 2024Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Spot milk at the highest premium over class since 2019 and 13 straight months of lower production show tight supply underpinning the rally.
