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An analysis from Perdue AgriBusiness examines how a May 2019 change to the Class I skim milk price calculation reduced producer returns. It explains the two approaches to deriving skim milk prices from Class IV products.
Changes in US milk pricing formulas affect farm milk returns and therefore dairy herd size and feed demand over time. The article is explanatory with no immediate price shock.
agproud.comNormand St-PierreMar 13, 2021After 93 past neutral policy events, MILK 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.
