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Yesterday another World Agricultural Supply Demand Estimate (WASDE)was released:
http://www.usda.gov/oce/commodity/wasde/latest.pdf
Of particular interest are the numbers on pages 33 & 34. Page 33 shows higher - not lower - commercial disappearances in 2009 than in 2008.
Page 34 show the all milk price for 2009 of $12.81 per hundredweight. The projected price for 2010 is $15.55 - 16.15 per hundredweight. Taking some numbers from a reliable source, covering mostly large farms, shows a loss in 2009 of $4.05 per hundredweight. Add that number to $12.81 and you have a minimum price of $16.86.
Some farms will need more and some less but, $15.55 for 2010, just wont make it.
Amen!!
ReplyDelete$17.00 today would equate to about $3.00 in 1970 - anybody remember selling milk for $3.00 in 1970? Some of us have waited decade upon decade for supply to go down enough to "turn" the market in our favor - it will never happen. This is all a ruse and we are being taken!
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