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USDA's NASS Milk Production report shows US licensed dairy operations fell again, to just under 32,000, and 2020 milk output rose just over 2% to 223 billion pounds. The American Farm Bureau notes that rising corn and soybean meal prices are expected to continue into 2021.
Rising feed costs squeeze dairy margins and may slow herd expansion, which can soften future demand for feed. Higher corn and meal prices are the key mechanism here.
utahfarmbureau.orgMichael Nepveux, Economist, American Farm BureauMar 3, 2021After 136 past neutral report events, Milk (Class III) moved a median -0.1% over 5 sessions (43% higher; middle half -0.7% to +0.5%), and -0.3% over 20.
After 1,040 past bullish report events, Corn moved a median +0.5% over 5 sessions (62% higher; middle half -0.9% to +2.0%), and +0.8% over 20.
After 414 past bullish report events, Soybean Meal moved a median -0.1% over 5 sessions (48% higher; middle half -2.1% to +2.3%), and +0.3% 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.
