# Tighter milk supply sends prices climbing

> Milk production is falling in both the U.S. and New Zealand, tightening supply for the next six months. Milk prices have recovered from a mid-July low of $13.80 per cwt to roughly $17 to $18 per cwt in mid-August, while feed markets have eased. An AgResource analyst expects dairy and grain markets to stay volatile.

- Date: 2023-08-21 · published 2023-08-21T12:00:00.000Z
- Category: market · region US · magnitude medium
- Page: https://feedsoft.ai/events/34739-tighter-milk-supply-sends-prices-climbing
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Lower milk output from two major exporters reduces dairy supply and supports prices, while cheaper feed improves dairy margins. Dairy herd demand for feed ingredients may firm if milk output stays down.

## Read by commodity

- MILK: bullish ▲

## Sources

- farmprogress.com: https://www.farmprogress.com/livestock-and-dairy/tighter-milk-supply-sends-prices-climbing

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