September 17, 2010 October Class I tops $16 - highest in 2 years
USDA announced today the advance Class I price for October at $16.58. This is $1.08 higher than September's Class I price and the highest in two years. October is the sixth straight month in which the Class I price is based on the Class IV advance pricing factor being the "higher of". The Class IV advance pricing factor was 60 cents higher than the Class III advance pricing factor for the first two weeks of September.
Class I has been driven by Class IV for eight out of the 10 months so far on 2010.
USDA's 23-State Milk Production report on Friday, Sept. 17 pegged production figures to be 2.7% above year ago.
California is burgeoning back with a 4.9% increase in production during August, while Wisconsin's production was up only 0.5% and Minnesota dropped by 0.8%. Texas production fell 0.4% while New Mexico gained by only 0.6%; Colorado was up 1.3% and Kansas up 1.5%. Idaho's production was up 7.8%, after surpassing New York last month for the #3 position. Washington and Oregon were up nearly 8% and 7% respectively.
In the Northeast, Pennsylvania's production was up a whopping 3% in August despite fewer cows compared with a year ago; New York was up 4.8%; and Vermont was up 4.9%. In the Southeast, Virginia was up 0.7% and Florida was up 2.6%.