# Milk-Price Drops to Cost Dairy Billions in Lost Revenue as Coronavirus Bites - NMPF

> Futures-based estimates of the 2020 U.S. all-milk price fell from about $18.50 to roughly $17.20 per cwt as the coronavirus hit demand. USDA DMC projections show margin payments becoming likely. Only 47.8 percent of eligible operations had signed up for the 2020 DMC program.

- Date: 2020-03-31 · published 2020-03-31T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/4157-milk-price-drops-to-cost-dairy-billions-in-lost-revenue-as-coronavirus-bites
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Lower projected milk prices reduce farm margins and the value of the safety net, while the lower price outlook drives down milk market expectations.

## Read by commodity

- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2020-03-31 | 1 | -10.9% | -20.3 | Dated 2020-03-31, it describes futures-implied milk price estimates falling as coronavirus cut demand, consistent with the selloff in milk futures. |
| MILK | 2020-04-01 | 1 | -10.9% | -19.8 | Futures-based all-milk price estimates fell about $1.30 per cwt on coronavirus demand loss as of 2020-03-31, reflecting the sentiment and demand shock feeding into the limit-type drop. |
| MILK | 2020-04-06 | 5 | -14.4% | -5.9 | Lower futures-implied all-milk price forecasts and DMC margin concerns reflect the same bearish repricing, though it is partly a consequence of the move. |
| MILK | 2020-04-05 | 5 | -14.4% | -6.4 | Futures-implied all-milk price forecasts were cut as demand weakened, reflecting the repricing of expectations in late March. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2020-04-02 | [Dairy farmers begin to flush away milk due to coronavirus \| AP News](https://feedsoft.ai/events/4159-dairy-farmers-begin-to-flush-away-milk-due-to-coronavirus-ap-news.md) | -4.6% | -21.3% |
| MILK | 2020-04-01 | [Coronavirus is Impacting Milk Prices \| Red River Farm Network](https://feedsoft.ai/events/4158-coronavirus-is-impacting-milk-prices-red-river-farm-network.md) | -13.4% | -28.2% |
| MILK | 2020-04-24 | [Idaho dairymen dump milk as demand, prices fall \| Capital Press](https://feedsoft.ai/events/6502-idaho-dairymen-dump-milk-as-demand-prices-fall-capital-press.md) | -13.8% | -7.5% |
| MILK | 2021-07-07 | [What does inflation mean for milk prices? - Dairy Producer](https://feedsoft.ai/events/46216-what-does-inflation-mean-for-milk-prices-dairy-producer.md) | +0.7% | -1.8% |
| MILK | 2020-04-28 | [COVID-19 continues to hammer dairy prices](https://feedsoft.ai/events/5177-covid-19-continues-to-hammer-dairy-prices.md) | -12.8% | -7.6% |

## Sources

- nmpf.org: https://www.nmpf.org/milk-price-drops-to-cost-dairy-billions-in-lost-revenue-as-coronavirus-bites/

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