Markets & Management

USDA announced August’s Dairy Margin Coverage (DMC) margin at $13.72 per cwt, the highest margin since the program’s inception in 2019. The margin did not trigger indemnities at any coverage level. August’s all-milk price came in at $23.60 per cwt, jumping 80 cents from July’s $22.80. At $23.60 per cwt, August’s all-milk price is the highest that it has been since December 2022 at $24.70. With corn, premium alfalfa hay, and soybean meal prices decreasing month over month, feed costs dropped 59 cents from July at $10.47 per cwt to $9.88 in August. December 2020’s feed costs were $9.66 per cwt and are the last time that feed costs were at this level. Increasing milk prices and lower feed prices have resulted in the milk margin above feed costs trending upwards over the past four months.

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