MPP Forecast – January
January 9, 2017
The U.S. Department of Agriculture’s National Agricultural Statistics Service (USDA-NASS) last week reported the November U.S. average all-milk price at $17.60 per hundredweight, a dollar higher than October’s all-milk price. The price jump was a bit stronger than expected, based on the November federal order class prices announced earlier in December.
USDA-NASS last week also reported feed prices for November. The announcements will result in a November monthly Margin Protection Program (MPP) feed cost of $7.62 per hundredweight, 14 cents less than the October monthly MPP feed cost and the fifth-straight drop in the MPP monthly feed cost since June. The monthly MPP margin for November will be $9.98 per hundredweight.
USDA’s current forecast, based on the Dec. 30 CME futures settlements, projects that the MPP margin will remain well above $10.00 per hundredweight through the first half of 2017 and above $11.00 per hundredweight during the second half. USDA’s MPP margin forecasts are updated daily online.
NMPF’s Future for Dairy website also offers a variety of educational resources to help farmers select the desired coverage level.