# Weekly Digest: 2021 milk production forecast jumps, pushing price expectations lower - Progressive Dairy | Ag Proud

> USDA's February WASDE raised its 2021 US milk production forecast to 227.4 billion pounds, up 700 million from the prior month, with 2020 output estimated at 223.1 billion pounds. The agency cut its 2021 all-milk price forecast by about $1.15/cwt versus 2020, mainly on lower Class III prices, and expects higher feed costs.

- Date: 2021-02-10 · published 2021-02-10T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/48801-weekly-digest-2021-milk-production-forecast-jumps-pushing-price-expectations
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Dairy cow numbers near a 25-year high point to more milk supply, which pushes Class III and all-milk prices lower and weighs on dairy-linked demand for feed. Higher expected feed costs squeeze the margin for buyers of feed ingredients.

## Read by commodity

- CORN: bullish ▲
- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2021-08-04 | [Weekly Digest: July Class III-IV milk prices lower, spread shrinks - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/45572-weekly-digest-july-class-iii-iv-milk-prices-lower-spread-shrinks-progressive.md) | -1.6% | -2.8% |
| MILK | 2019-02-21 | [December milk production growth slows, milk prices lower - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/60591-december-milk-production-growth-slows-milk-prices-lower-progressive-dairy-ag.md) | +9.3% | +6.6% |
| MILK | 2021-07-13 | [USDA adjusts 2021-22 milk production outlooks, cuts price projections - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/46213-usda-adjusts-2021-22-milk-production-outlooks-cuts-price-projections.md) | -1.2% | -4.8% |
| MILK | 2017-07-19 | [Weekly Digest: Less milk forecast -  \| Ag Proud](https://feedsoft.ai/events/69995-weekly-digest-less-milk-forecast-ag-proud.md) | -0.6% | +5.4% |
| MILK | 2025-03-13 | [USDA Lowers 2025 Dairy Product, Milk Price Forecasts, Also Reduces Milk Production Forecast](https://feedsoft.ai/events/25582-usda-lowers-2025-dairy-product-milk-price-forecasts-also-reduces-milk.md) | -0.5% | -7.2% |
| CORN | 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) | +2.1% | +5.7% |
| CORN | 2020-09-11 | [USDA: Milk output forecast raised; smaller harvest boosts feed price projections - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/51235-usda-milk-output-forecast-raised-smaller-harvest-boosts-feed-price-projections.md) | +4.5% | +5.3% |
| CORN | 2017-05-12 | [Dairy Economic Update: Less milk forecast -  \| Ag Proud](https://feedsoft.ai/events/71017-dairy-economic-update-less-milk-forecast-ag-proud.md) | -0.3% | +3.4% |

## Sources

- agproud.com: https://www.agproud.com/articles/35982-weekly-digest-2021-milk-production-forecast-jumps-pushing-price-expectations-lower

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