The level of milk production will be a major factor on how much milk prices strengthen. If the growth in milk production is 2% or less, along with favorable domestic sales and continued improved exports the Class III price could be in the mid $16’s by July, assuming some recovery in cheese prices, and the $17’s for the remainder of the year peaking in October in the high $17’s. The Class IV price could be in the $17’s beginning in August and for the remaining months. However, dairy futures are currently less optimistic for the Class III price. Class III futures do not reach $17’s until August and remain in the low $17’s for the remainder of the year.