In late April, Class III milk prices were down 50 percent to $10 to $11 per hundredweight. AgResource Company President Dan Basse says that market is now in the low $20 range. Despite this rally, Basse is concerned about the record spread between the June and October milk futures. “June-October milk is now at a $7.50 premium. I can’t find anything like that in history. In fact, the biggest premium we can find is a little over $1.” Foodservice is coming back online, but Basse says that is happening very slowly. Demand is not expected to reach pre-COVID levels for many months.
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.