The National Milk Producers Federation and Dairy Management Inc. have just released their February 2015 Dairy Market Report.

The dairy industry is moving further into the price correction that will define the first half of 2015. Chicago Mercantile Exchange futures markets indicate that U.S. average milk prices will hit the year’s lowest levels in March and April, while milk-price-overfeed cost margins will bottom out in April and May. Conflicting signals are coming from both the domestic and international dairy markets as to how low these respective bottoms will be. But some signs, including the still-moderate domestic stock situation for butter and cheese, a temperate outlook for U.S. milk production growth and the futures themselves, indicate the correction may not be as severe as it appeared a few months earlier.

Find the complete report here.