The all-milk price for August rose to $16.60/cwt., or 60 cents/cwt. over July’s levels, USDA’s National Agricultural Statistics Service (NASS) reported today.
August’s price was also up $4.50/cwt. from August 2009. It was the highest all-milk price since November 2008 and the fourth straight month of dairy improvement, according to Alan Levitt’s Daily Dairy Report.
The USDA-NASS report said feed costs increased about 2% from July. Estimated corn prices climbed to $3.65/bu., up 15 cents from July. Soybean prices increased 31 cents to $10.10/bu. Alfalfa hay fell $1 to $116/ton.
Levitt noted that the cost of feed to produce 100 lb. of milk was estimated at $7.03, leaving “income over feed costs” at $9.57/cwt., up from $9.10 in July, according to calculations derived from USDA numbers
Overall, USDA-NASS said, dairy’s August index, at 127, is up 3.3% from a month ago and 37% higher than August last year. The fluid grade milk price is up 60 cents and the manufacturing grade milk price is up $1.00 from the previous month.
In addition to milk, producers also received higher prices for wheat, corn, and cattle and lower prices for broilers, lettuce, onions, and cantaloupes.