Milk prices have been trending downward since December, and that will likely continue through early June, says Bob Cropp, University of Wisconsin Extension dairy economist. The Class III price was $17.40 per cwt last December and fell to $15.15 in April. May is near $15. Prices should start to trend upward again in June.
“This pricing pattern is not unusual,” Cropp explains. “After strong seasonal sales of butter and cheese during Thanksgiving through Christmas, sales soften, and at the same time milk production starts to increase seasonally. Then as we move into summer, milk production slows. By September schools open, increasing beverage milk sales, and by fall milk plants and buyers of cheese and butter start building stocks to meet the strong seasonal sales.”