milk
September 30, 2016

MPP Milk-Feed Margin Soars

 |  By: Jim Dickrell

What a difference a few months make.  In May and June, the U.S. All-Milk price tumbled below $15 and whole herd feed costs soared to $9.  The result was a milk-feed margin that averaged $5.76/cwt, triggering the largest MPP indemnity payments in the program’s history.

Yesterday, USDA announced an All-Milk price of $17.10 and feed costs of $7.84 for August, resulting in a MPP margin of $9.26. In other words, in just a couple of months, milk prices climbed more than 15%, feed prices fell 12%, and the milk-feed margin jumped 46%.

When the August milk-feed margin is averaged with July’s margin of $7.59, the July-August period margin is $8.43/cwt. Result: No MPP indemnity payments for the period.

The August All-Milk price is up a full dollar up from July and up 40¢/cwt from a year ago. Florida’s milk price leads the nation, at $19.90/cwt, but Oregon came in at $19.50. South Dakota was third highest, with an All-Milk price of $18.80 in August.

Michigan, with its continued glut of milk, had the lowest All-Milk price of $15.60 in August. California was the only state to report an All-Milk price below $16, at $15.96. But that’s up a buck from July. You can view all milk prices here. Scroll to page 28.

 

 

This block is broken or missing. You may be missing content or you might need to enable the original module.