Three New Strategies for Dairy Producers, A Better Cattle Market, ADM to Crush More Soybeans

Today we start with a look into what large, progressive dairy producers see as the greatest challenges to their business in the near future. Our second story is a deep dive on cattle markets and how they've turned around recently, then finish up with a report on how ADM is increasing crushing capacity. 

Transcript

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Hey everybody and welcome to Chat BDC. Here's this Top Stories from Black Dirt Daily Today, which is Friday, July 31st. Hard to believe it's the last day in July. Today we're going to focus on three things dairy producers watched to help fend off higher prices, a rebound in cattle markets, a greater crushing capacity in a soybean market. So let's get to it. Starting off with an article by Karen Bonard on dairy herd management, the definition of a successful dairy farmer seems to be changing. Once judged primarily by pounds of milk shipped and crop yields per acre, today's producers must also operate as data scientists, real estate speculators, labor compliance experts, and beef marketers. This rapidly evolving reality took Stenner's stage at the 2026 High Grounds Dairy Conference in Chicago, where three industry-leading producers sat down for a candid boots-on-the-ground panel discussion. Each of the producers offered a transparent look at the forces keeping them up at night and the high-tech high-margin strategies pushing their operations forward. From the looming threat of AI data centers buying up prime farmland to the explosive profitability of beef on dairy crosses, the consensus was clear. The modern dairy is navigating unprecedented headwinds, but the opportunities for those willing to adapt have never been greater. When asked about the biggest concerns facing their operations, the answers didn't revolve around milk prices or feed costs. Instead, the focus immediately shifted to labor and land. Labor issues have been more pronounced this year with the threat of ice raids, adherence to immigration compliance, and other factors that impact immigration and the ability of foreign workers. Environmental regulation and intense competition for resources are also altering dairy's landscape. The most surprising new competitor for dairy land is an urban sprawl or even crop farmers. It's artificial intelligence. With massive tech companies seeking land and water resources to cool vast server farms, local governments are signing nondisclosure agreements and rezoning agricultural land. The influx of tech money has sent land prices into the stratosphere. This capital intensity is forcing operations to rethink expansion. Not only has the land doubled in price, but the cost of the cattle has also exploded. One dairy recalled buying Springers for $1,500 a head during their 2017 expansion. Today, those same animals cost between $3,800 and $4,000 each. It's a great article, and I encourage you to take a minute to read it. You'll find a link to it on BlackDirtDaily.com. Searching the cattle markets in an article from Abby Griman on Beef Magazine, Cattle Futures haltered their halted their downward spiral last week, finding what appears to be consolidative action. Intraday market action was still relatively wide for major consolidation, but some green on the board was welcome after 15 straight trading days with lower closes in live cattle. Live cattle front month August settled the week at $227.07.5 while the October through February contracts were up $1.72.5 to $1.80. Feeder cattle front month August settled at $345.32.5 down 62.5 cents while the September through January contracts were up $2.10 to $3.85. Though the futures markets have caught themselves a bit, cash trade and cutout prices have continued their downward slide. Majority of cash trade last week occurred at $2.30 to $2.31 per 100weight live in both the north and south, though a relatively light volume. That's down seven to eight bucks from the prior week's trade and marks the fifth week in a row of losses. In addition, feeder cattle cash prices have also started to come off in a significant way. It's taken longer for the feeder market to adjust relative to futures, but Friday's feeder index printed at $349.65, down $20.77 over the last two weeks, and the lowest price that's been seen in 2026. Abby has a great report in the full article, and again, you can read through that link at BlackDertDaily.com. Finishing up in commodity markets, Archiv Daniels Midland plans to expand crush capacity at four U.S. crush facilities in a move that's expected to add 25 million bushels of demand for soybeans. ADM said it's making initial investments at existing crush facilities in Frankfurt, Indiana, Deerfield, Missouri, Lincoln, Nebraska, and Spiritwood, North Dakota. Expansion is expected to unlock about 700,000 metric tons of oilseed crush capacity annually. ADM did not release a dollar amount for the planned upgrades. Well, that's all for now. As always, thanks for tuning in. If you found it useful, drop a comment. Be sure to check out BlackDirtDaily.com and for the full stories behind these topics. And don't forget to sign up for the Black Dirt Daily newsletter. I'll be back Monday with more business days from the financial market and operate. And goodbye for now.