Aug 30, 2014
Home | Tools| Events| Blogs| Discussions Sign UpLogin

2013 Price Improvement Still Suggest Red Ink

September 18, 2012
By: Jim Dickrell, Dairy Today Editor
 
 

The United States Department of Agriculture released its September Livestock, Dairy and Poultry Outlook this morning, suggesting corn prices could mitigate and milk prices improve in 2013.

The changes probably aren’t enough to off-set negative cash flow, particularly for dairy farmers who buy most of their feed.

USDA is projecting 2013 corn prices in the $7.20 to $8.60/bu range, down 30¢/bu from August. Soybean meal in the $485 to $515/ton range is projected for 2013, up $25 per ton from last month. The all-milk price is up a nickel, projected to range from $17.85 to $18.85 for 2013.

These prices (and $200 per ton alfalfa) suggest break-even costs will run from $20/cwt to $24/cwt, depending on how much feed must be purchased and how productive a herd is. Based on a University of Nebraska spreadsheet, the $20 breakeven would be for Midwest herds producing 24,000 lb. of milk/cow/year and purchasing all of its feed. The $24/cwt breakeven is for a herd producing 20,000 lb. of milk/cow/year.

The complete September USDA Outlook Report can be read here.

 

See Comments


 

MARKETS

CROPSLIVESTOCKFINANCEENERGYMETALS
Market Data provided by Barchart.com
Enter Zip Code below to view live local results:
bayer
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions