Class III prices return to pre-COVID-19 levels
Agriculture commodity prices have been all over the board as markets adjusted to a variety of factors brought on by COVID-19. Perhaps no commodity market has covered more ground than Class III future prices. Those prices dropped 35% from January to the end of April. From there, they have recovered to pre-pandemic levels.
Only ethanol, Class IV milk prices, and hogs have seen greater losses than Class III. None of those have recovered as far as Class III has. Numerically, the top of the curve, which occurred at the end of January, had June future prices at $17.80. On June 1, Class III prices reached $18.79.
“As we look across the agriculture commodities, Class III milk prices is the only product that’s back to pre-COVID prices, which I think is a testament to all of us in agriculture,” explained International Dairy Food Association’s (IDFA) Michael Dykes.