The 2018 milk prices could be the new normal

Milk prices have remained in a fairly narrow range thus far in 2018, with the monthly low of $15.30 per hundredweight (cwt.) registered in February and the high of $16.30 per cwt. posted in June. Early in 2018 there was optimism that U.S. milk prices would move higher in the second half of the year, as it was expected that stronger demand, especially export demand, and lower milk supplies would give a boost to prices. The time has come to recognize that it is going to take a notable shift in one of three areas to move US milk prices higher: 1. A slowdown in U.S. milk production 2. Stronger domestic demand for dairy products 3. Stronger U.S. dairy exports