Good news: Milk prices projected up, corn prices down

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

A solid 25 cents.

That’s what the U.S. Department of Agriculture has added to its estimate for Class III milk prices this year. In a report issued this morning, the USDA said Class III prices will average $16.75 to $16.95 per hundredweight this year ― up from its August estimate of $16.50 to $16.70.

The USDA also raised its estimate for the all-milk price. It now projects the all-milk price will average $17.80 to $18 per hundredweight this year ― again, extending each side of the range 25 cents from the $17.55 to $17.75 projected last month.

“Product prices are forecast higher for 2012 as the milk production forecast is reduced and demand is somewhat stronger. With higher product prices, both the Class III and Class IV price forecasts are raised,” the USDA said in its monthly “World Agricultural Supply and Demand Estimates” report. To see the full report, click here.

Meanwhile, the USDA has revised its corn price estimate downward. In August, the agency said corn would average $7.50 to $8.90 per bushel for the crop year beginning Sept. 1. Now, it says the corn price will average $7.20 to $8.60.

While that’s small consolation, since the corn price is still high by historical standards, it does mark the first time in many months that a combination of higher projected milk prices and lower projected corn prices has occurred.

The soybean price is unchanged from the August estimate of $15 to $17 per bushel.



Comments (6) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left

Rafael Jimenez    
Mexico  |  September, 12, 2012 at 10:27 AM

I think that having a dairy farm is no longer a good investment.

Minnesota    
September, 15, 2012 at 10:57 PM

Good News???? .25, thats a slap in the face when feed cost have almost doubled in 6 months. Good news would be 5-6 dollars cwt.

Draino    
Pennsylvania  |  September, 12, 2012 at 04:56 PM

25 cents isn't going to cut it. The dairymen need $7.50 more per cwt. with present grain prices.

Brad    
CO  |  September, 12, 2012 at 05:29 PM

You call this good news? It's time to get real.

Kim patterson    
Kentucky  |  September, 12, 2012 at 06:11 PM

Although this is a bit of good new, this small amount will not make much of a difference when our feed bill goes up $100 a ton next month. We need the farm bill to pass the Agriculture Committee before the old farm bill expires. We need more money for our milk. The drought, the economy and low milk prices will drive many dairy farmers out of business this year. I might be one of them very soon.

Mark    
Minnesota  |  September, 15, 2012 at 11:02 PM

Good News ????? .25 is a slap in the face when feed cost have almost double in 6 months. Good news would be $ 5-6 cwt.


T5 Electro Command™

New Holland has further extended the T5 Series appeal to livestock producers with the addition of the Electro Command™ semi-powershift transmission. Two ... Read More

View all Products in this segment

View All Buyers Guides