MPP Forecast: May
May 6, 2016
NMPF’s forecast for MPP margins for the remainder of 2016 – based on early-May milk and feed futures prices – indicates that nearby margins may dip below the $7 threshold before strengthening in the fourth quarter of 2016. Projected margins declines are based on weakening dairy commodity prices and recent strength in feed prices during the current planting and growing season. Favorable growing conditions could reduce new crop corn and soybean prices and would push the MPP margin higher than current forecasts.