Pennsylvania’s income over feed cost reached its highest level of 2013 in August, up 79¢/cow/day over July estimates, reports Jim Dunn, a Pennsylvania State University economist.
"The August value is $8.24/cow/day. This is the highest value of 2013, matching the $8.24 of December 2012," he says. "Most of the increase in IOFC is because of a lower feed costs, which fell by 12% from July levels. All three components of the fixed ration in the estimated feed cost fell in August. The cost of feeding a cow fell by 72¢/day to $5.28."
Pennsylvania all-milk prices rose a dime in August over July, now averaging $20.80/cwt. That’s also up $1.80/cwt over August 2012 prices.
Pennsylvania corn prices fell by 86¢/bu. and soybean meal fell by more than 21% from the previous month. The alfalfa hay price fell by 9% to $189/ton, Dunn reports.
"The expectation of a good harvest of corn and soybeans in the Corn Belt and the beginning of the harvest in the South have lowered prices of these commodities. It’s becoming clearer that we will not run out of corn before the new crop is available," Dunn says.
But poor moisture conditions in the Midwest are lowering yield expectations, particularly for soybeans. Some fields in the Midwest have not received measureable rainfall since July 4. Soybean futures have risen $2/bu for fall contracts, and soybean meal has followed suit.
Dunn’s full report can be read here.