# Margins Tighten for Producers Amid Feed and Fuel Cost Increases - NMPF

> NMPF reports US liquid milk production grew 1.7% in July, the slowest pace since March 2025, with heat stress and wildfire smoke trimming output per cow. Feed costs are rising on drought-hit crops and diesel costs are lifting hauling charges, and DMC margins are expected to fall below the $9.50 threshold from September through December.

- Date: 2026-10-06 · published 2026-10-06T12:00:00.000Z
- Category: weather · region US · magnitude low
- Page: https://feedsoft.ai/events/17118-margins-tighten-for-producers-amid-feed-and-fuel-cost-increases-nmpf
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md), [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Rising feed costs from drought-reduced crop yields squeeze dairy margins and could reduce herd-expansion demand for feed, while the slower milk growth offers some support to dairy prices.

## Read by commodity

- SOY: bullish ▲
- CORN: bullish ▲
- MILK: neutral
- DIESEL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2021-08-31 | [Rising production costs will keep dairy farm margins tight](https://feedsoft.ai/events/45574-rising-production-costs-will-keep-dairy-farm-margins-tight.md) | -4.6% | -8.1% |
| CORN | 2019-06-02 | [Feed cost increases have feedyards paying attention to the weather market - RealAgriculture](https://feedsoft.ai/events/58669-feed-cost-increases-have-feedyards-paying-attention-to-the-weather-market.md) | -1.9% | +1.4% |
| CORN | 2019-06-10 | [Agritrends- Increased feed prices a concern for livestock farmers- South Africa](https://feedsoft.ai/events/58724-agritrends-increased-feed-prices-a-concern-for-livestock-farmers-south-africa.md) | +5.9% | +4.8% |
| CORN | 2019-01-28 | [High feed prices to affect profit margins of poultry farms in India \| Company News - Business Standard](https://feedsoft.ai/events/61237-high-feed-prices-to-affect-profit-margins-of-poultry-farms-in-india-company.md) | +0.7% | +0.8% |
| CORN | 2023-10-13 | [Drought affects crop marketing for producers - Brownfield Ag News](https://feedsoft.ai/events/33731-drought-affects-crop-marketing-for-producers-brownfield-ag-news.md) | +0.2% | -3.5% |
| SOY | 2024-05-06 | [Rains in the South concern players; demand for soybean meal increases – Eita Gota](https://feedsoft.ai/events/6449-rains-in-the-south-concern-players-demand-for-soybean-meal-increases-eita-gota.md) | +0.3% | -1.4% |
| SOY | 2019-06-10 | [Agritrends- Increased feed prices a concern for livestock farmers- South Africa](https://feedsoft.ai/events/58724-agritrends-increased-feed-prices-a-concern-for-livestock-farmers-south-africa.md) | +4.7% | +2.2% |
| SOY | 2022-11-18 | [Irregular rains and high temperatures cause concern for rural producers - Revista Cultivar](https://feedsoft.ai/events/13689-irregular-rains-and-high-temperatures-cause-concern-for-rural-producers-revista.md) | +1.4% | +4.4% |

## Sources

- nmpf.org: https://www.nmpf.org/margins-tighten-for-producers-amid-feed-and-fuel-cost-increases/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.