The USDA’s Dairy Margin Coverage (DMC) program hit an all-time high at $15.57 per cwt in September. Feed costs have softened resulting in historically high milk over feed margins.

These favorable margins are expected to continue as U.S. milk exports are increasing. Last month, the National Milk Producers Federation reported 89 new contracts through its Cooperatives Working Together (CWT) program.

This brings CWT-assisted sales for 2024 to 11.2 million pounds of dairy products. That is equivalent to over 100 million pounds of milk on a milkfat basis.

The exported products will reach customers in Asia, Oceania, the Middle East, North Africa, Europe, Central America, the Caribbean and South America, with shipments continuing through June 2024.

Read more on the DMC trends here.