The improved relationship between feed prices and milk prices is favorable to increase milk production. Increased milk production this spring will put pressure on milk prices. However, the lows of 1997 are not predicted. The price spread between blocks and barrels is now more normal, about 4 cents per pound. We can expect additional declines in cheese prices for the immediate weeks ahead.
Cheese stocks are higher than a year ago.
T he spring flush in the southeast has made additional milk available for manufacturing. This milk along with some milk from the southwest seeking a higher price home have entered the Chicago market order area. The result, has been a sharp drop in the over order premiums negotiated by dairy cooperatives. Over order premiums in neighboring orders are also affected. Copyright 1997-98, Contact MooMilk Produced by ISYS Idea Systems, Inc.