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The USDA Dairy Forward Pricing Program authority expired on October 1, 2023, after Congress failed to pass a 2023 Farm Bill, so new forward contracts are no longer exempt from minimum milk pricing. High interest rates and a strong dollar are also weighing on rural and agricultural economies, according to CoBank.
Expiry of the forward pricing exemption may raise handler costs and affect milk supply contracting, while a strong dollar weighs on US dairy export competitiveness.
agproud.comDave NatzkeOct 13, 2023After 93 past neutral policy events, Milk (Class III) moved a median -0.0% over 5 sessions (48% higher; middle half -0.6% to +0.6%), and +0.2% over 20.
After 15 past bullish policy events, US Dollar (Broad) moved a median +0.2% over 5 sessions (53% higher; middle half -0.4% to +0.4%), and +1.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
