The American Dairy Coalition submitted a report to USDA estimating the effect of elevated fuel costs on dairy farms. Based on a survey of 372 producers, it estimated that a weighted-average 550-cow operation faced a $6,000 monthly increase in fuel costs since July, with about $0.53 per hundredweight of milk attributable to daily farm activities and feed and supply deliveries.
Higher fuel and delivery expenses raise dairy production costs and could squeeze farm margins, potentially adding upward pressure to milk prices if costs are passed through.
After 237 past bullish report events, Milk (Class III) moved a median +0.0% over 5 sessions (51% higher; middle half -0.3% to +0.6%), and +1.2% over 20.
After 109 past bullish report events, ULSD / Diesel moved a median +0.2% over 5 sessions (51% higher; middle half -3.3% to +3.9%), 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.