# Weaker Milk Supply Drives Class III Milk Price to 27-Month High

> The September Class III milk price reached $23.34/cwt, the highest in more than two years. US milk output has been lower than the prior year for 14 consecutive months, and replacement heifer shortages limit how quickly farmers can expand herds.

- Date: 2024-11-01 · published 2024-11-01T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/28018-weaker-milk-supply-drives-class-iii-milk-price-to-27-month-high
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Tight milk supply and slow herd rebuilding suggest elevated dairy prices may persist, supporting dairy producers' ability to buy feed. Lower feed costs also improve margins, which keeps dairy demand for feed ingredients steady.

## Read by commodity

- MILK: bullish ▲

## Sources

- dairyherd.com: https://www.dairyherd.com/markets/milk-prices/weaker-milk-supply-drives-class-iii-milk-price-27-month-high

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.