Strength in the cheese and powder markets have helped rebound milk prices and income over feed costs in Pennsylvania, says Jim Dunn, an ag economist with Penn State University.
The Pennsylvania all-milk price came in at $16.40/cwt in November and will push above $18 in December. This is the first time in a year prices have been this high.
Feed costs per hundredweight of milk have also been falling, dipping below $6 in September and staying there. These are the lowest feed prices in two years. The milk margin per 100 lb. of milk over feed costs reached $10.47 in November, the highest margin since December 2008.
Based on current futures market prices, Dunn says the Pennsylvania all-milk price could remain above $18 for all of 2010, and average $18.41 for the year. That compares to $14.40/cwt for 2009, and $20.04 for 2008.
For Dunn’s complete outlook, click here.
