# USDA outlook reduces milk production estimates, forecasts better margins - Progressive Dairy | Ag Proud

> USDA's September 10 WASDE cut 2021 U.S. milk production by 300 million pounds to 227.8 billion and 2022 by 600 million pounds to 230.6 billion. Butter, cheese and nonfat dry milk price forecasts were raised, and the 2021 Class III price was lifted to $16.65 per cwt.

- Date: 2021-09-11 · published 2021-09-11T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/45074-usda-outlook-reduces-milk-production-estimates-forecasts-better-margins
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Lower milk output and firmer dairy product prices support milk prices, while declining feed price forecasts improve dairy margins. Lower feed costs also ease pressure on feed buyers.

## Read by commodity

- CORN: bearish ▼
- MILK: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2021-10-12 | [Economic Update: USDA outlook cuts milk production estimates, brightens price forecast - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/44698-economic-update-usda-outlook-cuts-milk-production-estimates-brightens-price.md) | -0.1% | +0.7% |
| MILK | 2021-11-10 | [Weekly Digest: USDA outlook sees deeper milk production cuts - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/44057-weekly-digest-usda-outlook-sees-deeper-milk-production-cuts-progressive-dairy.md) | -0.8% | +2.7% |
| MILK | 2020-07-10 | [Economic Update: USDA cuts milk production forecast for 2020, with price outlook improved - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/52125-economic-update-usda-cuts-milk-production-forecast-for-2020-with-price-outlook.md) | +0.2% | -18.0% |
| MILK | 2020-10-12 | [USDA milk production, price and feed cost projections all raised - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/50754-usda-milk-production-price-and-feed-cost-projections-all-raised-progressive.md) | +2.2% | +11.0% |
| MILK | 2019-12-11 | [2020 milk price outlook improves - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/55581-2020-milk-price-outlook-improves-progressive-dairy-ag-proud.md) | -0.3% | -12.8% |
| CORN | 2023-08-01 | [USDA maintains record corn production forecasts despite Midwest drought](https://feedsoft.ai/events/13267-usda-maintains-record-corn-production-forecasts-despite-midwest-drought.md) | -2.3% | -2.8% |
| CORN | 2018-08-10 | [Soybeans, Grains Plunge After USDA Raises Production Forecasts](https://feedsoft.ai/events/63478-soybeans-grains-plunge-after-usda-raises-production-forecasts.md) | -7.5% | -9.1% |
| CORN | 2024-10-11 | [USDA Boosts Corn Production Estimate](https://feedsoft.ai/events/27801-usda-boosts-corn-production-estimate.md) | -1.8% | +0.9% |

## Sources

- agproud.com: https://www.agproud.com/articles/54992-usda-outlook-reduces-milk-production-estimates-forecasts-better-margins

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