# Ag Alert

> Dairy farmers face squeezed margins from an ongoing drought, high feed and fuel costs, and fears of recession, even though milk prices have hit record highs this year. Rabobank expects milk prices to peak and retreat modestly through 2023, while market reports show higher prices beginning to reduce demand.

- Date: 2022-07-06 · published 2022-07-06T12:00:00.000Z
- Category: weather · region US · magnitude low
- Page: https://feedsoft.ai/events/8552-ag-alert
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Drought in California limits local feed availability and supports feed prices, while expected milk price softening could reduce dairy herd expansion and feed demand over the coming year.

## Read by commodity

- CORN: bullish ▲
- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2017-03-20 | [Winter weather, lackluster cheese demand affecting dairy prices \| Dairy \| leadertelegram.com](https://feedsoft.ai/events/72008-winter-weather-lackluster-cheese-demand-affecting-dairy-prices-dairy.md) | +0.6% | -3.1% |
| MILK | 2025-01-04 | [Mild Winter Boosts US Milk Production Amid Market Fluctuations \| The Bullvine](https://feedsoft.ai/events/6083-mild-winter-boosts-us-milk-production-amid-market-fluctuations-the-bullvine.md) | -1.3% | -0.4% |
| MILK | 2021-08-31 | [Rising production costs will keep dairy farm margins tight](https://feedsoft.ai/events/45574-rising-production-costs-will-keep-dairy-farm-margins-tight.md) | +4.8% | +3.5% |
| MILK | 2017-11-24 | [Futures File: Milk market frothy; buyers want soybeans; U.S. dollar tumbles – Greeley Tribune](https://feedsoft.ai/events/9915-futures-file-milk-market-frothy-buyers-want-soybeans-u-s-dollar-tumbles-greeley.md) | -8.8% | -8.2% |
| CORN | 2023-04-25 | [DTN Ag Weather Brief](https://feedsoft.ai/events/13284-dtn-ag-weather-brief.md) | -2.4% | -6.4% |
| CORN | 2019-05-29 | [Market alert - grains experience wild price rally \| XTB](https://feedsoft.ai/events/10899-market-alert-grains-experience-wild-price-rally-xtb.md) | +0.4% | +6.4% |
| CORN | 2021-05-29 | [Brazil on drought alert, faces worst dry spell in 91 years](https://feedsoft.ai/events/46926-brazil-on-drought-alert-faces-worst-dry-spell-in-91-years.md) | +2.3% | -0.9% |
| CORN | 2021-06-09 | [Brazil Declares First Drought Alert in a Century: Weighs on Crop Production](https://feedsoft.ai/events/46413-brazil-declares-first-drought-alert-in-a-century-weighs-on-crop-production.md) | -1.4% | -1.4% |

## Sources

- agalert.com: https://www.agalert.com/california-ag-news/archives/july-6-2022/worries-of-milk-price-drop-weigh-on-dairy-farmers/

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