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USDA's Agricultural Prices report put the June all-milk price at $18.10 per cwt, up $4.50 from May. The June DMC margin was $9.99 per cwt, up $4.62, but record negative producer price differentials cut mailbox prices well below those margins.
Record negative PPDs reduce the milk checks farmers actually receive, which can curb herd investment and feed purchasing even when headline margins look strong.
centerfordairyexcellence.orgAug 4, 2020After 136 past neutral report events, MILK 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.
