# Is Risk Management Worthwhile? - Dairy Herd

> Milk futures and underlying cash prices have weakened since a spike on July 14, with barrel cheese and Class III futures reaching new lows. The article notes that anticipated drought-driven feed cost increases and stronger demand have not yet lifted milk prices.

- Date: 2021-07-28 · published 2021-07-28T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/46214-is-risk-management-worthwhile-dairy-herd
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Weak milk prices despite expected feed cost increases highlight margin pressure on dairy producers, which could eventually trim herd size and dairy feed demand.

## Read by commodity

- CORN: neutral
- MILK: bearish ▼

## Sources

- dairyherd.com: https://www.dairyherd.com/markets/milk-marketing/risk-management-worthwhile

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