Gary Schnitkey
- The Basic Formula Price (BFP) in October was $12.84 per cwt., its highest level during 1997. The BFP likely will decline throughout the remainder of 1997. Coffee, Sugar Cocoa Exchange futures prices place the BFP around $12.70 in November and $12.30 in December. Declining milk prices result from slackening demand for cheese and other dairy products.
- Even though the BFP may decline, prices farmers receive for Grade A milk should increase during November due to Class I forward pricing in the Federal Orders. November milk prices should be about $.40 per cwt. above October prices. December prices will likely fall by $.10 per cwt.
- Current supply and demand conditions suggest that milk prices will decline through the early part of 1988. The BFP likely will fall to $11.90, the historical average price, by February or March.