Milk-Feed Margin Surpasses $11/cwt
The United States Department of Agriculture reported this week that the milk-feed margin for December was $11.10, up $1.12 from November. The average for the two months comes in at $10.54, which of course means no margin indemnities will be paid through the Margin Protection Program.
The December margin increase was driven by higher milk prices, with the U.S. all-milk price coming in at $18.80. That’s up $1.20/cwt from November. Feed prices were largely unchanged from November.
The $11.80 margin in December was the highest margin since the spring of 2014. Then, the margins exceeded $12 in March, April and May when milk prices were in the $24 to $25/cwt range.
You can see all the MMP information here.