A wide gap in September Federal Milk Marketing Order (FMMO) Class IV and Class milk prices extends the incentive to depool Class IV milk.

June 2022 “mailbox” prices averaged about $1.03 per hundredweight (cwt) less than announced average “all-milk” prices for the same month.

Progressive Dairy provides monthly online updates of important dates, reports and advice affecting risk management decisions.

Analyzing the Class I mover, the spread in the monthly advanced Class III skim milk pricing factor ($7.04 per cwt) and advanced Class IV skim milk pricing factor ($12.67 per cwt) is $5.63 per cwt, the widest since July 2020.

Digest highlights

• FMMO Forum registration deadline here
• July fluid sales down
• Dairy Defined: Plant-based beverage ‘bust’ is here
• Online organic dairy ‘origin of livestock’ rule training offered
• GDT product prices higher
• Finstad joins U.S. House Agriculture Committee
• Southeast: The Dairy Alliance launches sustainability documentary

August 2021-22 recap at a glance

The widening gap in August Federal Milk Marketing Order (FMMO) Class IV and Class III milk prices pushed Class IV pooling lower.

The USDA’s monthly World Ag Supply and Demand Estimates and Crop Production reports provide price, cost forecasts.