2-25 IAN Milk Prices

 Where is the price of milk going?

When you talk with University of Idaho economist Garth Taylor, it is always intriguing. Right now he discusses the state of dairy. “ milk prices are way up and are forecasted to remain strong. Rabobank It is  forecasting really strong milk prices until at least midyear and then they use some fuzzy prices about weakening milk prices. we have to look at   feed prices because if we have a continuation the drought, we are not out of it in the Midwest. The you looked at the  drought calendar it is bright red across eastern Colorado and into Kansas and Nebraska, it is a very severe drought still. They have not received any rain so we are looking at the hangover from 2012 drought is going into 2013 and if feed prices go up and hay prices go up, we are going to look for another cup year out of the dairy people despite having very good milk prices.  I will continue with a forecast for good milk prices and the index will get back on its feet again or is it going to decline because of  the drought, well Dave you have as good a feel for that as anybody else.