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Home » Blog » News » DMC margin falls further in February
April 11, 2021

DMC margin falls further in February

April 8, 2021

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DMC margin falls further in February

February’s margin under the Dairy Margin Coverage program dropped $0.92/cwt below January’s to $6.22/cwt. Of that decline, $0.40/cwt was due to a lower milk price, which was $17.10/cwt for the month, while the rest was generated by a higher feed cost calculation, almost all due to a higher price for corn that was slightly offset by a lower soybean meal price. The February payment for $9.50/cwt DMC program coverage is therefore $3.28/cwt.

Current futures prices indicate that the February margin may be the lowest for the year, and that the margins going forward should rise above $9.50/cwt sometime around mid-year.

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