# Dairy markets could finally rebalance

> Rabobank analyst Tom Bailey says global dairy markets remain near the edge of profitability amid trade tensions, rising milk output and expected feed price increases. US All-Milk fell to $15.30 per cwt in February, while corn futures are trading above $4 per bushel through 2018 and into 2019 for the first time since 2014. Chinese buyers have driven much of global import growth.

- Date: 2018-05-10 · published 2018-05-10T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/65157-dairy-markets-could-finally-rebalance
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Rising corn prices raise dairy feed costs while ample milk supply caps milk prices, squeezing producer margins. For feed buyers, stronger corn and a looming spring flush point to tighter dairy feed margins.

## Read by commodity

- CORN: bullish ▲
- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2022-06-23 | [Wild 2022 in grain markets sparks 2008 comparisons \| Reuters](https://feedsoft.ai/events/40978-wild-2022-in-grain-markets-sparks-2008-comparisons-reuters.md) | +1.6% | -10.7% |
| CORN | 2019-06-27 | [Markets analysis: cropping margins for 2020 - Farmers Weekly](https://feedsoft.ai/events/58670-markets-analysis-cropping-margins-for-2020-farmers-weekly.md) | -2.5% | -4.4% |
| CORN | 2023-10-31 | [US dollar falls as markets believe Fed is done hiking rates \| Reuters](https://feedsoft.ai/events/11457-us-dollar-falls-as-markets-believe-fed-is-done-hiking-rates-reuters.md) | +1.1% | -3.7% |
| CORN | 2017-05-10 | [Rising demand, evolving markets fueling change in feed business](https://feedsoft.ai/events/71128-rising-demand-evolving-markets-fueling-change-in-feed-business.md) | +0.3% | +2.4% |
| CORN | 2021-12-01 | [Factors Expected to Drive the 2022 Corn Market](https://feedsoft.ai/events/44073-factors-expected-to-drive-the-2022-corn-market.md) | +8.0% | +4.8% |
| MILK | 2020-03-25 | [COVID-19 pandemic rocks dairy markets \| Capital Press](https://feedsoft.ai/events/54272-covid-19-pandemic-rocks-dairy-markets-capital-press.md) | -0.2% | -17.5% |
| MILK | 2017-07-28 | [Powder market still rebalancing as Europe seeks equilibrium - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/70118-powder-market-still-rebalancing-as-europe-seeks-equilibrium-progressive-dairy.md) | +6.0% | +6.6% |
| MILK | 2021-02-25 | [Dairy is testing historical market limits](https://feedsoft.ai/events/48806-dairy-is-testing-historical-market-limits.md) | +5.2% | +4.1% |

## Sources

- hoards.com: https://hoards.com/article-23115-dairy-markets-could-finally-rebalance.html

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