Feed Prices Continue to Pressure Dairy Margins

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Feed prices continue to pressure dairy margins in 2021. Though we are seeing Class III milk gain nicely, the higher prices of corn and soybeans are pressuring profits for dairymen. May corn gained 1 ½ Monday to 5.47/bu with December finished at 4.81 ½. Soybeans set new highs overnight at 14.60/bu to settle just 3 ¾ cents higher at 14.33 ¾ with Soybean meal fall 1.70 to 418.30/ton.

Class III milk moved 5 cents higher in March at $16.35, April gained 11 cents to $17.75, May gained 13 cents to $18.27. Second half of 2021 was 10-15 cents higher and is averaging $18.24/cwt.

Class IV lost some steam. March was unchanged at $14.32, April fell 13 cents to $15.09, May fell 8 cents to $15.58/cwt. Balance of 2021 was unchanged to 4 cents lower. Averaging at $16.62/cwt.

The CME spot trade was a bit of a sleeper. Cheddar blocks and barrels held unchanged with no trades or offers with blocks at 1.73 ¼, barrels at 1.50 ¾. Butter gained a quarter of a cent to 1.69 ¼. Grade A Non Fat Dry Milk was unchanged at $1.17 ¾  and Dry whey was our biggest mover, gaining 1 ½ cents to $0.59 1/2/lb.

 

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