A break from feed prices in sight
The U.S. Dairy Export Council’s economist says he’s watching how USDA’s supply and demand report could impact feed costs.
William Loux tells Brownfield, “Because feed prices have been so high, I really want to get a sense of what USDA is expecting in terms of acreage.”
Wednesday the USDA made year to year increases for corn and soybean production with mostly lower demand expectations which could be beneficial for feed prices and drove milk prices higher.
Loux is bullish this year’s exports could continue to be record.
“I think everything we’re seeing shows really strong demand growth out of the Asia Pacific region, we see some recovery in Mexico in demand this year,” he says.
USDA raised fat basis dairy exports for 2021 because of increased butterfat product expectations while lowering skim-sold basis exports with weaker than expected nonfat dry milk/skim milk powder sales more than offsetting increased whey product exports.
Loux was a featured presenter during this week’s National Milk Producers Federation’s Young Cooperators webinar.