The USDA will release its first World Agricultural Supply and Demand Estimates (WASDE) report of the year on January 12th, which will include the last crop production summary. This is the first window for the USDA to make demand changes into the new year, which could impact the forecast for supply.
John Heinberg, Market Advisor with Total Farm Marketing, says the market is likely to remain choppy until this report is released with final numbers, setting the base for Wisconsin farmers through March.
He says that even though crop and dairy markets have been in the green for the last few months, producers need to remain flexible and aware. For dairy specifically, milk prices have risen nearly $2.50 since September, but are reliant on demand and export shipment numbers.
Despite the increasing pressure from the ongoing pandemic and the presence of the Omicron variant, Heinberg predicts that the dairy market will remain strong in 2022 due to high feed cost and total expenses.
For more information visit www.totalfarmmarketing.com or call (800) 334-9779.
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