# Dairy margins may be slipping in the new year

> Dairy Margin Coverage margin was $10.89 per cwt in November 2022 as feed costs fell for a fourth month. Futures data show Class III milk prices falling faster than feed costs, suggesting margins may slip in 2023.

- Date: 2023-01-05 · published 2023-01-05T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/5548-dairy-margins-may-be-slipping-in-the-new-year
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Falling milk prices relative to feed costs squeeze dairy margins and can reduce dairy herd feed purchases. Lower corn and soybean meal costs have partly offset the decline.

## Read by commodity

- SBM: bearish ▼
- CORN: bearish ▼
- MILK: bearish ▼

## Sources

- hoards.com: https://hoards.com/article-33044-Dairy-margins-may-be-slipping-in-the-new-year.html

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