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Feb 8, 2023REPORTUS

USDA reduces 2023 milk production, price projections

USDA's February WASDE lowered 2023 US milk production by 900 million pounds to 228.3 billion pounds. The agency also cut its 2023 Class III price forecast by 95 cents to $17.90 per cwt and its all-milk price forecast to $20.70.

WHY IT MATTERS

Lower milk output is offset by weak domestic demand and international price pressure, so the net outlook is for lower dairy prices, which reduces dairy-related feed demand.

AFFECTSMilk (Class III)▼

SOURCE
agproud.comDave NatzkeFeb 8, 2023

Price reaction & history

Milk (Class III)▼bearishSO FAR1d +0.2%5d +0.9%20d -0.5%

After 273 past bearish report events, Milk (Class III) moved a median -0.2% over 5 sessions (39% higher; middle half -1.3% to +0.4%), and -1.4% over 20.

Aug 12, 2021USDA cuts 2021-22 milk production outlook but also reduces price projections | Ag Proud+0.3%
Jul 13, 2018USDA cuts 2018 and 2019 milk price projections, production forecasts - | Ag Proud-0.6%
Dec 11, 2024USDA projections highlight increased milk production | Ag Proud-0.5%
Jan 15, 2024USDA milk production, price outlooks remain stagnant | Ag Proud+0.4%
Sep 15, 2025USDA raises 2025 milk production forecast but lowers Class III and all-milk price projections | Ag Proud+0.3%

Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.

Milk (Class III) MILK · GP ▸

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