May Sets Third Consecutive Monthly Milk-Price Record
July 6, 2022
The USDA-reported national average all-milk price for May was $27.30/cwt, topping the April price by $0.20/cwt for a new monthly record, the third consecutive month of all-time-high prices.
The May DMC feed cost eased back by two cents from April’s record to $14.79/cwt, boosting the May DMC margin by $0.22/cwt to $12.51/cwt, the highest monthly margin since the DMC program began in January 2019.
The milk price outlook for the remainder of 2022 has been weakening slightly in recent weeks, as high dairy product wholesale prices have caused a spike in retail dairy price inflation, generating concerns about whether consumers may respond by buying fewer dairy products. All current projections of the DMC margin continue to anticipate that it will remain above the $9.50/cwt maximum coverage level under the program for the remainder of 2022.