Pennsylvania’s All-Milk Price Could Top $20 This Fall
Based on current future prices, Pennsylvania’s all-milk price is poised to exceed $20 by September, say Tim Beck, Virginia Ishler and Rob Goodling, all with Pennsylvania State University.
Through the summer, Pennsylvania’s all-milk price should be above $19/cwt, they say.
But even at an all-milk price of $19.20 projected for this month and a feed cost of $7.02/cwt, Pennsylvania dairy farmers would still be slightly below (15¢/cwt) break-even when all costs were considered. They could climb above break-even in July if all-milk prices reach the projected level of $19.55.
The good news is that if current futures prices hold, Pennsylvania’s all-milk price will top $20 in September and remain there through March 2020. And even though prices dip below $20 in April and May of next year, the prices are still strong enough to remain above the three-year break-even price.
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