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Data from USDA AMS showed negative producer price differentials across the seven multiple-component pricing orders totaled -$528 million in June 2020, the largest in California. Mass de-pooling of milk and a 2018 farm bill formula change contributed to the record negative PPDs.
Record negative PPDs lower the effective farm-gate milk price and signal disruption in the pool, which can reduce dairy herd size and feed buying over time.
aginfo.netAug 5, 2020After 24 past bearish policy events, Milk (Class III) moved a median -0.1% over 5 sessions (33% higher; middle half -1.8% to +0.5%), and -4.6% 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.
