The June 2014 Pennsylvania all-milk price of $25.10/cwt. was down $1.10 from May.
Measured another way, feed costs per hundredweight of milk produced averaged $8.28/cwt. in June, down 34¢ from May. With the lower milk price, the milk margin over feed costs was $16.82/cwt., down 76¢/cwt. from May 2014, but up $5.03/cwt. from June 2013.
Dunn’s forecast of the average 2014 Pennsylvania all-milk price is $24.89/cwt., which would be up $3.41 (15.9%) from 2013’s estimated price of $21.48/cwt.
The forecast all-milk prices for the rest of 2014 average $23.85/cwt., or $1.88/cwt. above the same period of 2013. Milk production is expected to grow by more over the corresponding months in 2013 in response to better margins.
Corn prices have fallen 8% since Dunn’s last report, ending at $4.17/bu. for the July 2014 contract. It looks like growing conditions in the Midwest will produce a very large crop, despite some flooding in the western Corn Belt. China, Brazil, and Argentina are all expected to have good crops, with the Chinese crop predicted to be a record. Soybean prices are down 2.3% from last month, which seems like a muted response to the bean-crop forecasts, which are also for an excellent crop on more acreage than last year. The latest USDA soybean acreage forecast seems too low and the growing conditions look good. Soybean meal is down 0.9% from last month.
The U.S. dollar is about the same vs. the Euro and Australian and New Zealand dollars since the June report.
To read Dunn’s complete Dairy Outlook report, click here.
Dairy replacement sales results from Turlock, Calif., on July 18. Prices $/head unless otherwise noted:
#1 Holstein springers: 2000-2950
#2 Holstein springers: 1400-1975
#1 Jersey springers: 1800-2200
#1 Jersey-X springers: 1500-2200
A special dairy heifer sale featuring 1,200-1,500 dairy heifers will be held Saturday, July 26, 10 a.m. A special consignment will be 500 Holstein heifers from the Joe Branco dairy.
Sulphur Springs Dairy Auction
Dairy replacement sales results from Sulphur Spring, Texas, on July 17:
Fresh cows: 1500-1825
Holstein Springers: 1500-1975
Breeding age heifers: 900-1325
Small heifers: 400-840
Heifer calves: 190-390