# Higher Milk Output Pressures Dairy Producer Margins Further

> U.S. milk production rose 2.4% in August from a year earlier, with the milking herd up 174,000 head to 9.717 million cows. The Dairy Margin Coverage margin fell to $9.34 per hundredweight from $9.93 in July as the All-Milk price dropped 50 cents to $19.80 and feed costs rose to $10.46.

- Date: 2026-11-02 · published 2026-11-03T03:07:11.597Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/76860-higher-milk-output-pressures-dairy-producer-margins-further
- 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

Growing milk supply alongside lower milk prices points to softer dairy demand relative to output, which weighs on the milk price. Producers' margins are squeezed, though the report expects moderating feed costs to help in November and December.

## Read by commodity

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

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2025-11-20 | [How dairy producers can offset margin pressures in 2026](https://feedsoft.ai/events/22112-how-dairy-producers-can-offset-margin-pressures-in-2026.md) | -0.1% | -8.3% |
| MILK | 2026-06-23 | [Higher Milk Production Forecasts Temper Dairy Price Outlook - Dairy Producer](https://feedsoft.ai/events/18807-higher-milk-production-forecasts-temper-dairy-price-outlook-dairy-producer.md) | -0.0% | -1.6% |
| MILK | 2024-05-21 | [Market Outlook - Dairy Producer](https://feedsoft.ai/events/30249-market-outlook-dairy-producer.md) | -0.9% | +6.1% |
| MILK | 2026-06-29 | [Record milk production keeps pressure on dairy prices](https://feedsoft.ai/events/18977-record-milk-production-keeps-pressure-on-dairy-prices.md) | -2.7% | -1.6% |
| MILK | 2022-08-02 | [Dairy Margin Watch: July - Dairy Producer](https://feedsoft.ai/events/40037-dairy-margin-watch-july-dairy-producer.md) | -11.5% | -10.7% |
| CORN | 2022-06-03 | [Dairy Margin Watch: May - Dairy Producer](https://feedsoft.ai/events/40944-dairy-margin-watch-may-dairy-producer.md) | +5.5% | +1.1% |
| CORN | 2024-04-23 | [Dairy Outlook: April 2024 - Dairy Producer](https://feedsoft.ai/events/30735-dairy-outlook-april-2024-dairy-producer.md) | -0.1% | +4.1% |
| CORN | 2023-08-16 | [Ethanol production rises thanks to high crush margins  : The Daily Digest](https://feedsoft.ai/events/34550-ethanol-production-rises-thanks-to-high-crush-margins-the-daily-digest.md) | +0.1% | -0.8% |

## Sources

- allagnews.com: https://www.allagnews.com/higher-milk-output-pressures-dairy-producer-margins-further/

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