Pennsylvania dairy farmers saw milk income over feeds costs (IOFC) improve again in September, with a milk price increase surpassing rising feed costs, according to the latest Dairy Outlook report from Jim Dunn, Penn State University dairy economist.
Dairy margins were mixed over the last two weeks of September, weakening slightly in the fourth quarter of 2015, while improving in deferred months, according to the latest CIH Margin Watch report from Commodity & Ingredient Hedging, LLC.
Average all-milk prices held fairly steady in August, but remain well below a year ago. August continues a seven-month trend in which the average U.S. milk price has deviated less than 30¢/cwt., staying in a range of $16.60-$16.90/cwt.
Pacific trade ministers are optimistic of closing a sweeping Pacific Rim trade deal after progress on Friday on hurdles involving autos, dairy products and intellectual property protections for expensive biologic drugs.
Prices decline at most areas outside the Northeast. The Henry Hub spot price fell 12¢ from $2.59/MMBtu last Wednesday to $2.47/MMBtu yesterday. Similarly, at the Chicago Citygate, spot prices fell from $2.65/MMBtu last Wednesday to $2.56/MMBtu yesterday. Prices moved in similar patterns at most market locations other than the Northeast.