With an improved All-Milk price and lower commodity prices compared to much of last year, dairy farmers’ pocketbooks are feeling less squeezed so far in 2024. That looks to continue as USDA projects that both corn and soybean production will be greater this year.
On Friday, the monthly World Agricultural Supply and Demand Estimates (WASDE) released by USDA included a 10-cent per bushel reduction in corn price from last month to $4.30. Corn production for the coming harvest is now estimated to be up 1.6% to reach 15.1 billion bushels. This is driven by predictions of more corn acreage instead of a change in yields.
The corn price used in the Dairy Margin Coverage (DMC) program calculations last year peaked at $6.80 per bushel in February before falling the rest of the year and finishing 2023 at $4.80. That’s a remarkable difference from the $7.37 per bushel peak utilized in June 2022.
Katelyn Allen
July 18, 2024
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