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The Dairy Management Inc. monthly report said U.S. dairy exports hit a record 17.8% of milk solids production in 2022. Domestic consumption was sluggish, though American-type cheese use grew in late 2022.
The DMC margin fell to $9.76/cwt in December, and margins are expected to be lower in 2023.
Strong export demand supports dairy prices, but weaker domestic use and falling margins point to a softer 2023 milk price. Lower margins can also reduce producers' appetite for feed purchases.
embed-rech-01.dialog.cmFeb 22, 2023After 136 past neutral report events, Milk (Class III) moved a median -0.1% over 5 sessions (43% higher; middle half -0.7% to +0.5%), and -0.3% 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.
