# Milk prices decline due to increased production – The Seam

> Class III milk prices are forecast at $18 to $24 this fall, with October and November near the low end as supply grows. AgResource's Ben Buckner attributes the decline to rising US milk output and cow numbers, Federal Reserve rate hikes, and a stronger dollar. He cites recession risk and safe-haven demand for the dollar as added pressure.

- Date: 2022-08-15 · published 2022-08-15T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/40200-milk-prices-decline-due-to-increased-production-the-seam
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expanding cow numbers point to more milk into late 2022 and 2023, which weighs on dairy prices and reduces the value of dairy co-products used in feed. A firmer dollar also cuts US dairy export competitiveness.

## Read by commodity

- DXY: bullish ▲
- MILK: bearish ▼

## Sources

- theseam.com: https://www.theseam.com/milk-prices-decline-due-to-increased-production/

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