Gary Schnitkey
- The Basic Formula Price (BFP) during November rose $.13 per cwt. over the October price reaching $12.96 per cwt., the highest price yet during 1997. The November price increase was unexpected. Commercial use of milk during the third quarter rose from year earlier levels. Stocks of dairy products, in particular cheese, declined. Both of these factors lead to the price increase.
- Some forecasters are suggesting that milk prices may be above average during 1998. Optimistic price projections are based on projected small gains in U.S. milk production. I still look for milk prices to decline during the spring of 1998, but the declines might not be as dramatic as projected.