The objective of this study is to provide an empirical evaluation of the expected relationship between cash and futures prices for fluid milk. This is done using historic cash prices from 1988 to 1995, and making inferences about how futures prices would have behaved if they had traded during...

In January 2000, all federal milk marketing orders began using a common set of product price formulas to establish milk component values and related Class prices. For roughly forty years before then, order Class prices were tied to the price paid for milk by unregulated manufacturing plants in...