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Class III milk prices rose to near-record highs in 2020 while Class IV stayed at multi-year lows, widening the price gap between them. Record amounts of milk were de-pooled from Federal Milk Marketing Order pools, and producer price differentials fell to record lows in component-pricing orders.
Wide class spreads and de-pooling shift revenue away from some producers and renew pressure to reform Federal Order pricing, which could change how milk value is distributed across the US market.
fb.orgJohn Newton, Ph.D.Dec 15, 2020After 93 past neutral policy events, Milk (Class III) moved a median -0.0% over 5 sessions (48% higher; middle half -0.6% to +0.6%), and +0.2% 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.
