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Rabobank expects rising farm-level production costs, driven by drought-induced higher feed costs and inflation, to keep dairy farm margins tight. It projects milk production growth in the Big-7 exporting regions to stay below 1.2%.
Drought-driven feed cost increases squeeze dairy margins and cap milk output growth, which supports demand for feed ingredients while limiting dairy herd expansion.
dairyglobal.netRené GroeneveldAug 31, 2021After 42 past weather events, Milk (Class III) moved a median +0.2% over 5 sessions (52% higher; middle half -0.9% to +2.5%), and +2.0% over 20.
After 1,465 past bullish weather events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.9% 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.
