# Milk supply outweighs demand when it comes to pressure on producer prices - Progressive Dairy | Ag Proud

> Milk production surges from large swings in cow numbers can create excess supply that outpaces domestic demand growth. Export sales are not strong enough to absorb the surplus. Producer milk prices come under pressure when consumption growth lags.

- Date: 2021-10-09 · published 2021-10-09T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/44706-milk-supply-outweighs-demand-when-it-comes-to-pressure-on-producer-prices
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Excess milk supply weighs on producer prices when demand growth does not keep pace. Dairy buyers may see softer milk-based feed ingredient values in that environment.

## Read by commodity

- MILK: bearish ▼

## Sources

- agproud.com: https://www.agproud.com/articles/54871-milk-supply-outweighs-demand-when-it-comes-to-pressure-on-producer-prices

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