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NMPF's June 2016 forecast projects that Margin Protection Program dairy margins may fall below the $6 threshold in the near term before recovering in the fourth quarter of 2016 and into 2017. USDA announced a March-April margin of $7.15 per cwt, which triggers payments on buy-up coverage.
Forecasted margin weakness and the MPP payouts indicate continued pressure on US dairy producers, which could affect milk supply response and dairy feed demand.
nmpf.orgJun 3, 2016After 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.
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.
