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USDA released a new dairy processing cost study covering cheese, whey, butter and nonfat dry milk plants, updating the cost inputs used for make allowances. The article explains how these allowances feed into Federal Order milk pricing formulas.
Changes to make allowances alter the milk price formula and therefore farm milk returns, though the direct effect on feed commodity prices is small.
fb.orgDaniel MunchMar 1, 2022After 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.
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.
