# Market analyst says higher feed cost can lead to higher milk prices later | News-Talk 1230 KFJB

> Dan Basse of AgResource said rising corn prices push farmers to re-evaluate the lowest-producing 5-10% of their herds, which raises cull rates when corn approaches $5.50/bu spot in Chicago. He said culling has been elevated for the past three to four weeks.

- Date: 2021-03-30 · published 2021-03-30T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/5255-market-analyst-says-higher-feed-cost-can-lead-to-higher-milk-prices-later-news
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Higher culling reduces the cow herd over time, which can tighten milk supply and support prices in the fourth quarter and early next year. Higher feed costs also reduce farm margins.

## Read by commodity

- CORN: bullish ▲
- MILK: bullish ▲

## Sources

- 1230kfjb.com: https://www.1230kfjb.com/2021/03/30/market-analyst-says-higher-feed-cost-can-lead-to-higher-milk-prices-later/

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