
Under new Federal Milk Marketing Order rules, make allowances for processors rose to 23-27 cents per pound from 5-7 cents, cutting the milk price in Class III and IV formulas. Upper Midwest producers, whose regions are heavy with cheese plants, are seeing mailbox prices lower than before the changes.
Three of the seven formula updates take effect Dec. 1.
Higher make allowances lower the minimum farm milk price, reducing dairy producers' margins and potentially their herd and feed-buying capacity. The effect is a sustained cut in milk value rather than a short-term price shock.
Setelah 24 peristiwa kebijakan bearish sebelumnya, Susu (Class III) bergerak median -0,1% selama 5 sesi (33% lebih tinggi; separuh tengah -1,8% sampai +0,5%), dan -4,6% selama 20 sesi.
Pergerakan benchmark setiap komoditas dari penutupan terakhir sebelum peristiwa. Pembacaan historis menggabungkan peristiwa serupa di masa lalu; itu menggambarkan apa yang terjadi, bukan apa yang akan terjadi. Bukan nasihat investasi.