Tridge summary
The article provides an overview of the US dairy industry's current market situation and future outlook, highlighting the improvement in Class III prices in December due to higher cheese and whey protein prices, while Class IV prices remain strong. It emphasizes the importance of dairy producers to capitalize on the favorable income over feed cost margins, which are expected to decrease but still remain high in 2025. The article also discusses the extension of the Dairy Margin Coverage (DMC) program under the 2018 Farm Bill, which will continue providing financial support to producers for another 12 months. Additionally, it outlines the availability of Dairy Revenue Protection (Dairy-RP) and Livestock Gross Margin for Dairy (LGM-Dairy) to help producers manage risk, alongside the sales period for LGM-Dairy being open on a weekly basis. The article also touches on the challenges in milk production due to avian influenza and the resulting decline in prices, with the Federal Milk Marketing Order advanced Class I base price starting the new year at its lowest since June 2024.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
The 2024 year ended with Class III prices showing more traction in December than in previous months as cheese and whey protein prices improved, and Class IV prices remained elevated to reflect strong market conditions. Futures for quarter one of 2025 anticipate income over feed cost margins to fall some but remain historically elevated, according to the HighGround Dairy report, “Dairy Producer Market Update,” released Dec. 18. The report stated, “Milk prices remain strong, feed costs are low and margins are among the most favorable seen in the past decade. With the commodity markets prone to volatility, it’s crucial for producers to capitalize on opportunities like these while they last.” Here's Progressive Dairy’s look at important dates, reports and advice affecting risk management decisions, as well as other information impacting the milk check in January. Dairy Margin Coverage (DMC) program The November 2024 DMC margin and indemnity payment will be announced Tuesday, Dec. 31, ...
Source: Progressivedairy
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