The United States Department of Agriculture reported the October all-milk price averaged $17.70/cwt across the country, up 20¢ from September but down an astounding $7.20 from a year ago.
Midwest all-milk prices were pretty much on par with the national average. But the California price, at $16.13 and the lowest in the country, continued to lag national prices. It’s the reason California producers are anxious to join the Federal Order system.
Feed prices have also continued to moderate, with corn reported at $3.67/bu, soybean meal at $328/ton and alfalfa hay at $156/ton. Consequently, the calculated milk/feed price margin for October was $9.22/cwt. Combined with the September milk/feed margin of $8.95, the average for the two months is $9.09.
As a result, there will be no Dairy Margin Protection Program payment for September/October. The margin must dip below $8/cwt for any indemnities to be triggered.
You can see all the prices here.