# Robust milk production threatens price recovery

> U.S. milk production is running 3.3% above a year earlier, and milk prices have recovered since their February low. Class III futures are trading in the low $19 range from July through October. Cheese block prices have fallen sharply from mid-May levels.

- Date: 2021-05-27 · published 2021-05-27T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/47112-robust-milk-production-threatens-price-recovery
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Rising milk output is likely to cap the recovery in Class III prices, especially as cheese softens. Lower dairy prices would reduce farm margins and could eventually slow herd growth and feed demand.

## Read by commodity

- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2021-06-02 | 1 | -8.8% | -6.1 | Reports of US milk output 3.3% above a year earlier and sharp declines in cheese block prices from mid-May point to a supply glut and weak cheese pricing, pressuring Class III futures. |

## Sources

- farmprogress.com: https://www.farmprogress.com/management/robust-milk-production-threatens-price-recovery

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