MPP Pay Period Margin Reaches 2016 High
October Margin Protection Program results were released by USDA this week. Corn inched up from its all-time low in August to $3.29/bu. Alfalfa hay hit a new low in October coming in at $135/ton and soybean meal was reported at $323.27/ton. The October all-milk price fell slightly to $16.60/cwt making the milk margin above feed costs $8.84/cwt.
With the September margin calculated at $9.48 the average for September and October, on which payments will be based, came to $9.16. This is the highest milk margin for a two month period since the 2015 November/December margin.
Check out this chart showing milk margin above feed costs for every month so far this year.