Dairy Margin Coverage margin drops to $10.94 in July

ZISK
Sep 3
1 min read

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report Aug. 29, which includes feed costs and milk prices used to calculate the July Dairy Margin Coverage (DMC) program margins and indemnity payments. July’s margin was $10.94 per hundredweight (cwt) as a result of both weaker feed costs and an all-milk price.

While the all-milk price was weighed down by expanded processing capacity for cheese and an increase in milk supply, it was the price of soybean meal and its new contract lows that drove feed costs down and ultimately pushed the DMC margin lower than June.

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