Milk margins could dip before a rebound in the fourth quarter. The National Milk Producers’ Federation fourth-quarter forecast for the Margin Protection Program shows they might go below the $6 threshold before strengthening at the end of this year, into 2017.
Chris Galen with the milk federation says they’re urging members to continue to take a conservative approach to cash management.
“It’s not going to be a great year for cash flow. Hopefully we will see more life in the commodity markets as we see, hopefully, greater consumption domestically, and maybe some additional exports as we end up the year. But right now things are just looking pretty bleak” said Galen
The USDA announced earlier that the March-April MPP margin is $7.15 per hundred weight.
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