With feed prices projected to come down, Dairy Margin Coverage payouts may not come at the end of 2024. But global unknowns emphasize the constant need for risk management.
USDA’s World Agricultural Supply and Demand Estimates predict corn prices will fall to $4.80 per bushel after two years exceeding $6, said Chris Wolf, a Cornell professor of agricultural economics, during a Farm Credit East webinar on Jan. 24.
Soybeans are predicted at $12.75 per bushel, and soybean meal is at $3.80 a ton.
Based on the numbers, it’s likely U.S. farmers will be planting more soybeans, Wolf said.
“The rule of thumb has always been, and it’s been pretty useful over the years, that if soybean price is more than 2.4 times the price of corn, that means plant soybeans,” Wolf said. “If it’s less than 2.4 times the price of corn, then that means plant corn.”
USDA forecasts the all milk price at $20 per hundredweight, Class III at $16 and Class IV at $19 or $19.50. Futures are projecting higher Class III and Class IV prices, Wolf said.
Looking at the margin, Wolf is predicting…
