# Dairy is testing historical market limits

> USDA Outlook Forum commentary noted US dairy cow numbers were up 100,000 year over year in December, the largest gain in some time and the highest since the mid-1980s. Historical data suggests such production growth has usually been followed by lower Class III prices over the following six months.

- Date: 2021-02-25 · published 2021-02-25T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/48806-dairy-is-testing-historical-market-limits
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Historically large herd and output growth points to sustained downward pressure on milk prices, lowering dairy-sector demand for feed in the medium term.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2020-04-29 | [Historic Dairy Oversupply Results in Dumping](https://feedsoft.ai/events/5181-historic-dairy-oversupply-results-in-dumping.md) | -12.4% | -7.1% |
| MILK | 2020-04-30 | [Milk is being dumped. Why is it so hard to address dairy market chaos? - CSMonitor.com](https://feedsoft.ai/events/5178-milk-is-being-dumped-why-is-it-so-hard-to-address-dairy-market-chaos-csmonitor.md) | -1.2% | +4.7% |
| MILK | 2018-05-10 | [Dairy markets could finally rebalance](https://feedsoft.ai/events/65157-dairy-markets-could-finally-rebalance.md) | -0.1% | +1.0% |
| MILK | 2026-04-27 | [Market, pricing changes force dairy producers to adapt \| Agriculture \| nwestiowa.com](https://feedsoft.ai/events/19878-market-pricing-changes-force-dairy-producers-to-adapt-agriculture-nwestiowa-com.md) | +1.4% | +0.5% |
| MILK | 2020-03-25 | [COVID-19 pandemic rocks dairy markets \| Capital Press](https://feedsoft.ai/events/54272-covid-19-pandemic-rocks-dairy-markets-capital-press.md) | -0.2% | -17.5% |

## Sources

- hoards.com: https://hoards.com/article-29720-dairy-is-testing-historical-market-limits.html

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