Milk price rebounds 100% between April and July

Dairy Outlook: Class III milk futures soar above $22.

Milk prices have always been volatile, but it looks like volatility will set a record in 2020. In January, the Class III price was $17.05. By May, it had fallen to $12.14. It looks like June will be above $20. The Class IV price has also been volatile, falling from $16.65 in January to $10.67 in May, and then recovering to $13.35 in June. What factors drove these big changes in milk prices?

“The sharp drop in prices in May was the result of the COVID-19 virus shutting down schools, universities, restaurants and food service, which caused a big drop in the sales of milk, cheese and butter,” Cropp says. “Milk production was also at a relative