# Discounted loads of milk carry mixed signals

> Spot milk in the Upper Midwest has traded about $10 per hundredweight under the Class III price every week this year, according to USDA Dairy Market News. US milk production rose only 1% year over year in Q1 2023, below the long-term trend of about 1.5%, and March output matched March 2021 levels. Production growth is concentrated in regions such as South Dakota and Texas, where new processing capacity is being added.

- Date: 2023-05-04 · published 2023-05-04T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/4117-discounted-loads-of-milk-carry-mixed-signals
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Slow national milk supply growth and new cheese capacity suggest the discounted spot milk does not reflect a broad surplus, which limits downside pressure on milk prices.

## Read by commodity

- MILK: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2024-02-26 | [Milk futures, cash dairy mixed - Brownfield Ag News](https://feedsoft.ai/events/5461-milk-futures-cash-dairy-mixed-brownfield-ag-news.md) | +3.9% | +1.7% |
| MILK | 2024-08-01 | [July FMMO milk class prices mixed \| Ag Proud](https://feedsoft.ai/events/6830-july-fmmo-milk-class-prices-mixed-ag-proud.md) | -0.4% | +0.4% |
| MILK | 2026-08-14 | [Dairy Product, Milk Price Forecasts Mixed In Latest USDA Projections - Cheese Reporter](https://feedsoft.ai/events/17911-dairy-product-milk-price-forecasts-mixed-in-latest-usda-projections-cheese.md) | +0.2% | -2.7% |
| MILK | 2022-07-25 | [Dairy Diary: Crop report shows 15% of U.S. corn is silking](https://feedsoft.ai/events/40632-dairy-diary-crop-report-shows-15-of-u-s-corn-is-silking.md) | 0.0% | -10.8% |
| MILK | 2023-05-03 | [Economic update: April FMMO milk class prices mixed \| Ag Proud](https://feedsoft.ai/events/8134-economic-update-april-fmmo-milk-class-prices-mixed-ag-proud.md) | -11.9% | -13.2% |

## Sources

- hoards.com: https://hoards.com/article-33549-Discounted-loads-of-milk-carry-mixed-signals.html

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