Dairy’s Margin Squeeze Is Getting Tighter

ZISK APP
1 hour ago
1 min read

Dairy futures prices have struggled to find much ground to stand on. Short term gains from heat waves or a spike in exports have done little to help the American dairy farmer. It is difficult to lock in profits or even manage risk with market inverses or flat futures prices as we look out into 2027. Locking in a profit is difficult, if not impossible today.

Outside factors such as declining beef cattle futures have caused a lot of concern, as for many, the extra income produced from calves sold has been the factor that allowed many producers to stay afloat. Here recently, feeder cattle prices have fallen nearly 30 cents per pound in the last three weeks and over 50 cents per pound in the last 60 days. While the beef cattle herd is not growing, the government is trying to help consumers at the grocery store by increasing imports.

Click here to continue reading