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Combined milk output from the largest dairy exporters (New Zealand, EU, US, Argentina, Australia) fell below prior-year levels from September 2021 and had not recovered by mid-2022, with first-half output about 1.1% lower. Environmental rules in Europe and New Zealand are capping herds, Australian drought has shrunk the herd, and South American inflation and currency volatility are curbing investment.
US producers face high feed and hay costs, with Central Valley hay near $450 per ton.
A prolonged global milk shortfall with slow supply response keeps dairy supplies tight and supports milk prices. Higher feed and hay costs also squeeze producer margins, which can further limit output.
hoards.comSarina SharpSep 25, 2022After 32 past bullish weather events, Milk (Class III) moved a median +0.1% over 5 sessions (50% higher; middle half -0.7% to +3.4%), and +3.2% 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.
