The January Dairy Market Report is now available. Looking back at 2017, the U.S. Department of Agriculture (USDA) estimates an average U.S. all-milk price of $17.65/cwt for all of last year. In terms of the extremes of the past 10 years, this will be $4.85 higher than the average price in 2009 and $6.35 lower than during 2014. The current Margin Protection Program (MPP) margin calculation should average about $9.70 in 2017, which would be the second-highest annual MPP margin over the past 10 years. It would be $3.60 below the highest, during 2014, and $5.12 above the lowest, during 2009. Monthly milk prices and margins both improved fairly steadily since last April, but federal order prices took a sharp drop at the end of the year, presaging a likely more difficult year ahead in 2018.
You can read the report here.