Reasons the Milk of Price is Expected to Rise

I am making a new commitment to myself to begin posting on a more regular basis beginning today. I took some time to read the several copies of the WSJ that were forming a formidable pile on the floor. An interesting article entitled, "Milk-Price Rise Expected to Steepen in July," grabbed my attention. I thoroughly enjoy milk and because my grandparents owned and operated a dairy for a while, I have a particular, nostalgic interest in the commodity.

Apparently the minimum milk price that processors must pay, is regulated by the Agriculture Department. The expectation is that the price of milk is going to increase 17% in July from June--84% from the price a year ago.

The reasons for the price increase are as follows:

• The European Union will no longer provide subsidies on milk exports
• A drought in Australia has decreased the supply to Asia
• Dairy farmers in the U.S. are increasing milk prices to offset higher prices in cattle feed due to higher prices in corn

The upside to this increase in price, is that a few days later, the WSJ reported corn prices might decrease over the next few weeks, so perhaps the price of milk could go down. I have no clue what we pay for milk right now, so I doubt it affects my spending/consumption too significantly. However, I am sure that some families with teenage boys might be affected by the price of milk.