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USDA announced August 2021 Class III milk at $15.95 per cwt, down 54 cents from July and $3.82 from a year earlier. Class IV was $15.92, just 3 cents under Class III, the closest gap in two years.
Futures pointed to a September rebound.
The narrowing gap between Class III and Class IV shows both milk pricing pools converging, and the lower Class III price reduces dairy-ration margin pressure for feed buyers. Futures signal a modest near-term recovery.
centerfordairyexcellence.orgSep 1, 2021After 273 past bearish report events, Milk (Class III) moved a median -0.2% over 5 sessions (39% higher; middle half -1.3% to +0.4%), and -1.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
USDA's August Class III announcement on 2021-09-01 coincided with the move and showed the narrow Class III-IV gap with futures pointing to a September rebound, supporting bullish sentiment.
