# What does inflation mean for milk prices? - Dairy Producer

> Dairy producers report average wages up 10% to 15% and parts costs up 20% or more versus a year ago. Corn futures rose 32% and soybeans 48% year-over-year in the first four months of 2021, and May feed price peaks would have pushed Class III breakevens to about $21.50 per cwt.

- Date: 2021-07-07 · published 2021-07-07T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/46216-what-does-inflation-mean-for-milk-prices-dairy-producer
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

High feed and input costs squeeze dairy producer margins, which can reduce herd sizes and eventually lower demand for corn and soybean meal used in dairy rations.

## Read by commodity

- SBM: bullish ▲
- CORN: bullish ▲
- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2021-11-19 | [US Dairy Prices Jump As Milk Production Growth Slows - EDairy News English](https://feedsoft.ai/events/44199-us-dairy-prices-jump-as-milk-production-growth-slows-edairy-news-english.md) | +1.5% | +4.4% |
| CORN | 2026-07-21 | [Protein inflation surges as costlier fodder pushes up milk, chicken prices - The Economic Times](https://feedsoft.ai/events/18511-protein-inflation-surges-as-costlier-fodder-pushes-up-milk-chicken-prices-the.md) | -0.2% | -1.4% |
| CORN | 2024-07-31 | ['Need Greater Confidence In Inflation..': US Fed On Possible Rate Cut In September; What It Means For Gold, Dollar?  - Goodreturns](https://feedsoft.ai/events/29146-need-greater-confidence-in-inflation-us-fed-on-possible-rate-cut-in-september.md) | -0.2% | -4.2% |
| CORN | 2021-04-30 | [Inflation-tolerant Fed will boost commodity prices \| Reuters](https://feedsoft.ai/events/47512-inflation-tolerant-fed-will-boost-commodity-prices-reuters.md) | +5.0% | -2.1% |
| CORN | 2023-03-17 | [As commodity prices slide, dairies brace for collapsing farmgate milk prices](https://feedsoft.ai/events/36864-as-commodity-prices-slide-dairies-brace-for-collapsing-farmgate-milk-prices.md) | -1.0% | +1.3% |
| SBM | 2022-09-01 | [What Europe’s Power Crisis Means for Oilseeds \| CZ app](https://feedsoft.ai/events/39706-what-europe-s-power-crisis-means-for-oilseeds-cz-app.md) | -4.6% | -6.4% |
| SBM | 2021-06-10 | [In the eye of the storm: How the oilseeds market emerged as the global driver of agriculture markets, its role in wider food price inflation - Fastmarkets](https://feedsoft.ai/events/46619-in-the-eye-of-the-storm-how-the-oilseeds-market-emerged-as-the-global-driver-of.md) | -2.1% | -6.2% |
| SBM | 2022-06-30 | [Inflationary pressure poses big challenge to economy](https://feedsoft.ai/events/41260-inflationary-pressure-poses-big-challenge-to-economy.md) | -0.8% | +4.4% |

## Sources

- dairyproducer.com: https://www.dairyproducer.com/what-does-inflation-mean-for-milk-prices/

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