
A CRS report says US milk prices for 2020 have weakened as the pandemic weakens the economy, after a period of low prices that led to farm exits and processor bankruptcies. It describes the Dairy Margin Coverage program, which pays producers when the margin between milk and a feed ration value based on corn, soybean meal and alfalfa narrows.
Weaker milk price prospects reduce dairy herd feed demand expectations and reflect a bearish milk outlook, while the DMC program provides a safety net for producers.
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.