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The producer price differential in Federal Order 1 hit a record $5.32 per hundredweight in August, as roughly 70% of pool volume was in higher-value classes priced well above Class III. The PPD is a variable accounting component that makes up a large share of the overall milk price for Northeast farmers.
A record PPD lifts farm milk returns in the Northeast, supporting milk production and dairy cow feed demand, though the effect is a pricing mechanism rather than a broad supply shock.
lancasterfarming.comPhilip GruberSep 29, 2022After 237 past bullish report events, Milk (Class III) moved a median +0.0% over 5 sessions (51% higher; middle half -0.3% to +0.6%), and +1.2% 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.
