Announced on October 2, the September Class IV (butter/powder) price was $16.35. The price per hundredweight was down 39 cents from the previous month and up $1.54 from a year ago. The next update is October 30.
The Class IV not only prices butter and powder but also affects the Class I mover. The Class I mover (based on "higher of" advanced Class III or Class IV skim milk price) plus the Class I differential for each order determines Class I skim milk price. The mover is equivalent to the Basic Formula Price (BFP) under the old pricing system. It equals (base skim milk price for Class I times 0.965) plus (advanced butterfat pricing factor times 3.5). The Class I mover is announced on or before the 23rd of the previous month.