# Milk Is Risky Business. Got Futures? - Perishable News

> Bloomberg reports that dairy farmers are increasingly hedging with futures as price volatility rises after US government support was scaled back. Outstanding futures and options for butter and nonfat dry milk reached a record in April, according to CME Group. Farmers face record US milk output even as domestic consumption declines, and feed and labor costs are rising.

- Date: 2018-05-07 · published 2018-05-07T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/65158-milk-is-risky-business-got-futures-perishable-news
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Growing hedging activity reflects persistent price volatility and oversupply in dairy, which can weigh on milk prices. Rising feed and labor costs add pressure on producer margins and feed demand.

## Read by commodity

- MILK: neutral

## Sources

- perishablenews.com: https://perishablenews.com/dairy/milk-is-risky-business-got-futures/

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