# Milk supply tight and farm-level prices up, along with costs

> Idaho dairy analyst Dustin Winston says global milk supply is contracting and farm-level milk prices will likely stay strong through at least June 2022. Production costs have risen sharply, pushing Idaho breakeven levels to $18.50-$19 per cwt. Class III futures trade at $19-20 for 2022.

- Date: 2022-01-03 · published 2022-01-03T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/4072-milk-supply-tight-and-farm-level-prices-up-along-with-costs
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

A contracting global milk supply and strong demand keep milk prices high, but rising feed costs squeeze dairy margins and can curb herd growth and feed purchases.

## Read by commodity

- MILK: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2022-01-05 | 5 | +12.2% | 4.2 | Contracting global milk supply and expectations of strong prices through mid-2022 supported futures buying. |

## Sources

- en.edairynews.com: https://en.edairynews.com/milk-supply-tight-and-farm-level-prices-up-along-with-costs/
- idahostatejournal.com: https://www.idahostatejournal.com/postregister/farmandranch/dairy/milk-supply-tight-and-farm-level-prices-up-along-with-costs/article_273d21a3-7abf-550a-9aff-098c8698e0aa.html

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