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USDA forecasts 2022 Class III milk prices averaging $24.05 per cwt, but rising feed, fuel, fertilizer and labor costs are squeezing dairy margins. Rabobank and BMO Harris Bank say milk revenue currently covers costs but that margins could compress.
Rising input costs and tighter margins may limit dairy herd expansion over time, which would moderate future dairy feed demand. Cost pressure is a medium-term consideration rather than an immediate price driver.
capitalpress.comCAROL RYAN DUMASCapital PressApr 18, 2022After 15 past neutral macro events, Milk (Class III) moved a median -0.2% over 5 sessions (27% higher; middle half -2.1% to +0.1%), and -3.2% 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.
