USDA posted its April margin through the
Dairy Margin Coverage (DMC) Program earlier this week at $9.60
per hundredweight, down 5 cents from March but $3.76 above year
ago levels. The margin was 10 cents above the $9.50 maximum
threshold for coverage, so the program did not trigger an indemnity
payment this month. From March to April, the all-milk price
dropped 20 cents per cwt from $20.70 to $20.50, while feed costs
dropped 15 cents from $11.05 to $10.90. There was a slight increase
in the corn cost from $4.36 per bushel to $4.39 or $156.79 per ton.
Alfalfa cost continues to decrease at $2.60, down from March’s
$271.00 per ton, and soybean meal cost fell from $362.17 per ton to
$357.68. Both reached multi-year lows again with alfalfa and soybean
meal being at their lowest since December 2021 at $253.00
per ton and October 2021 at $325.43, respectively.