Yesterday, we discussed the hog to corn ratio and cost of production for pork producers; today is a look at the dairy sector. As would be expected, all the same cost issues are affecting dairy production from labor, to energy, to transportation, and of course feed. The milk-income-over-feed-costs Dairy Margin Insurance Coverage (DMC) payments were triggered for August, for the first time since November 2021. Under the program, producers can cover margins that fall below $9.50/cwt; note that catastrophic coverage is triggered for all producers (regardless of their participation in the program at $4.00/cwt).
The national average margin for August was $8.08 per cwt; it was lower in the west. Milk prices rebounded from 2021 as product slowed...
What You Need to Know Today: Markets got a surprise with a corn yield of 181.2 bushels/acre in the October WASDE, above the average estimate of 177.6 bushels/acre and up from USDA’s September estimate of 178.5 bushels/acre. Although stronger demand is expected to absorb some of the addit...
Key Takeaways: On Friday afternoon, President Trump announced that Russia will “immediately supply over 300,000 Tons of Diesel Fuel” to the United States. The deal, typical of this administration, is light on details but promises an additional 500,000 tons in November and 1 m...
The USDA has lowered its 2026 red meat production forecasts slightly while forecasting a slight increase in broiler production. Beef is now projected at 24.802 billion pounds, 75 million pounds less than in September. Cow slaughter is expected to be up; however, this will be offset by lower ste...
