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USDA announced the July Class III milk price at $22.52/cwt, down $1.81 from June but $6.03 above a year earlier. CME futures for the last five months of the year average $20.29/cwt, more than $5 below the May peak.
The July Class IV price was $25.79/cwt, down 4 cents from June.
Lower forward Class III futures signal weaker milk revenue for dairy producers and reduced demand for dairy-based feed inputs. The downward trend points to continued pressure on milk prices through year end.
centerfordairyexcellence.orgAug 3, 2022After 273 past bearish report events, Milk (Class III) moved a median -0.2% over 5 sessions (39% higher; middle half -1.3% to +0.4%), and -1.4% over 20.
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.
The July Class III price announcement on Aug 3 was lower and futures remained far below the May peak, aligning with the day's decline.
The July Class III price fell $1.81 and futures for the rest of the year averaged more than $5 below the May peak, confirming the downward price trend.
