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: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
Yesterday we wrote about the Q1 GDP numbers and the June employment reports in an article entitled Real GDP for Q1 Relying on AI Buildout, Held Back by Consumer Spending. That article mentioned that consumer spending had become a drag on GDP. Nonetheless, real GDP in Q1 was revised upward to 2...
Key Takeaways: The Middle East and North Africa's arid climate and limited water resources have created a structural dependence on imported wheat. Government wheat tenders in major importing countries serve as important benchmarks for global trade, providing insight into exporter competitivene...
