It’s $6.99 higher than a year ago. The last time the Class III price was above $24.50 per cwt was in September 2014.
The July 2020 Class IV milk price rose just 86 cents from June to $13.76 per cwt. It’s down $3.14 from July 2019.
Final July uniform prices and producer price differentials (PPDs) will depend on the level of depooling in each Federal Milk Marketing Order (FMMO). The class price disparity will again provide ample incentive for Class III depooling.
As in June, the July Class III milk price is substantially higher than the Class I base price ($16.56 per cwt), the Class II price ($13.79 per cwt) and the Class IV milk price ($13.76 per cwt). While the difference between the Class III and Class I base price in July ($7.98 per cwt) shrunk a little from June ($9.62 per cwt), the difference between the July Class III price and the Class IV price grew to $10.78 per cwt.
July FMMO information, including uniform price and PPD calculations will start to be announced late next week. Here’s a reminder of June data.
Through the first seven months of 2020, the Class III price averaged $17.30 per cwt, the highest for that period since 2014. The January-July 2020 Class IV price averaged $13.78 per cwt, down $2.23 for the same period a year ago.
