Special Milk Class component prices for Classes 5(a) and 5(b) are calculated each month based on U.S. milk and dairy component prices (for Classes III and IV) announced by the United States Department of Agriculture (USDA).
60 day lag: Special Milk Class component prices are announced by the CDC on or before the 15th day of each month for the following month and are based on U.S. milk and dairy component prices announcements for the previous month which translates into a two month lag in time between the USDA pricing and the effective date of the CDC’s Special Class component prices. U.S. dairy component prices announcements are available online on USDA’s website: Milk Price Annoucements, Summaries, and Product Prices (select Announcement Type: Class II, III, IV and Components and Data Series: Announcement).
SMCPP Permit Holders should take note of dairy product pricing appearing on the Chicago Mercantile Exchange (CME) and dairy products prices collected by the USDA National Agricultural Statistics Service (NASS) which would help them to anticipate the resulting price changes that are likely to follow in the CDC’s announced component prices for Special Milk Classes 5(a) and 5(b).
United States Department of Agriculture
The Canadian Dairy Commission (CDC) uses the information found under the "Price Announcements" (right side of screen) on the United States Department of Agriculture (USDA) web site to determine the pricing for Special Milk Classes 5(a) and 5(b).
Chicago Mercantile Exchange (CME)
Get a glimpse of American prices by checking out the futures market on the Chicago Mercantile Exchange (CME).
For more information and examples on how Special Milk Class component prices are calculated, download a copy of the September 2010 issue of The Experts Forum.
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