Blended Price

• What is the Blended Expected Price?
• The producer can create a ratio of class III/IV to resemble a utilization their milk is marketed at.
• At the end of the quarter, the Blended price will settle against the weighted average class III and class IV price according to the producers selected class ratio 
• It is a blended price between Class III and Class IV futures, this blend ratio is up to the producer to decide

Example

 Class III = $16.40
 Class IV = $16.88.
 60% Class III and 40% Class IV blend would produce a Blended Expected Price of $16.59.