Milk price has been following a historical seasonal trend which results in the high prices for the year taking place in September or October before prices begin to trend lower. Of course, there have been years during which higher prices were realized at other times of the year due to various changes of market fundamentals. This year seems to be following the seasonal pattern. The Class III milk price reached its highest level for the year in September with a $16.09 price. In fact, it is the highest price since November 2017. Class IV posted the second highest price of the year at $14.81 with the highest price being a dime higher in June.
The new Dairy Revenue Protection insurance opened October 9th allowing dairy farmers to protect milk or component revenue. This will allow the setting of a floor price while allowing for higher prices if they were to develop. The general feeling is that most farmers will wait and see how pricing will be set and changed on a daily basis as well as what is being offered per each of the five insurance periods. I recommend giving it time before making a decision. There is no deadline for signing up for the insurance. It can be done at any time, but an application must be signed before an endorsement can be established.