Tubbs Ranch, Malad, Idaho, Putnam photoDairy Futures Down in 2009
Gooding--Class III futures milk prices for January to March 2009 are averaging $14.40 per hundredweight while the April to June 2009 futures averaged $15.02 at the close of trading on Tuesday.
Magic Valley farmers are worrying over projected break-even milk prices that range from $15 to $16 per cwt. range, that's well below future's contract prices for the first half of 2009.
Market economists say tight prices will continue into the spring of 2009. Many farmers have started to tighten their belts to get through the winter, buying cheap fuel and feed to cut costs and all that activity has impacted feed and supply markets.
The tightening markets are evident from Gooding to Burley in the spot feed market with some still holding off locking-in prices until feed prices hit the bottom. Corn and soybean prices have dropped, but not all at the same pace.
As reported last week with the Farm Bureau Hay and Forage Committee, Dairy quality hay prices are down $10 in the last month because of all the activity; but still running $220 a ton, that's well above last November's $150 ton price.
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