# Dairy Margin Watch: July - Dairy Producer

> Dairy margins weakened in late July as milk prices were flat and projected feed costs rose. USDA reported June milk production up 0.17% year on year, the first annual increase since October 2021, while the milking herd remained 78,000 head lower than a year earlier.

- Date: 2022-08-02 · published 2022-08-02T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/40037-dairy-margin-watch-july-dairy-producer
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Slightly higher milk output and firm feed costs squeeze producer margins, and corn was bid higher on drought and heat forecasts, which adds cost pressure for dairy feeders.

## Read by commodity

- CORN: bullish ▲
- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2022-08-02 | 1 | -10.6% | -10.7 | USDA data showing June milk production up year over year, the first rise since October 2021, adds supply pressure to Class III futures. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2024-05-21 | [Market Outlook - Dairy Producer](https://feedsoft.ai/events/30249-market-outlook-dairy-producer.md) | -0.9% | +6.1% |
| MILK | 2025-11-20 | [How dairy producers can offset margin pressures in 2026](https://feedsoft.ai/events/22112-how-dairy-producers-can-offset-margin-pressures-in-2026.md) | -0.1% | -8.3% |
| MILK | 2024-12-17 | [Market Outlook: December 2024 - Dairy Producer](https://feedsoft.ai/events/26965-market-outlook-december-2024-dairy-producer.md) | -0.5% | +8.2% |
| MILK | 2024-11-18 | [Market Outlook November 2024 - Dairy Producer](https://feedsoft.ai/events/27402-market-outlook-november-2024-dairy-producer.md) | -0.3% | -5.9% |
| MILK | 2018-08-30 | [MPP-Dairy payments rise for July milk -  \| Ag Proud](https://feedsoft.ai/events/4766-mpp-dairy-payments-rise-for-july-milk-ag-proud.md) | -1.2% | -2.2% |
| CORN | 2024-07-14 | [Daily Market Wire 15 July 2024 - Grain Central](https://feedsoft.ai/events/29204-daily-market-wire-15-july-2024-grain-central.md) | -1.5% | -2.1% |
| CORN | 2026-07-10 | [July WASDE data proved helpful for grain prices](https://feedsoft.ai/events/10788-july-wasde-data-proved-helpful-for-grain-prices.md) | +2.1% | +0.8% |
| CORN | 2026-07-25 | [USDA raises milk production estimates - Dairy Star](https://feedsoft.ai/events/18527-usda-raises-milk-production-estimates-dairy-star.md) | -4.8% | +0.5% |

## Sources

- dairyproducer.com: https://dairyproducer.com/dairy-margin-watch-july/

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