Report for January

Continued growth in domestic butter and cheese consumption, coupled with further recovery of world prices for skim milk powder and whey, strengthened U.S. milk prices as 2016 drew to a close. The all-milk price hit a high for the first 11 months of the year in November, while the November Farm Bill Margin Protection Program (MPP) feed cost was the lowest of all previous months in 2016. As a result, the $9.98 per hundredweight MPP margin for November was the highest for the year up to that point.