# Commodity Inventories Determine Prices. Where Do Commodity Inventories Stand? - EDairy News English

> Analysis of US dairy markets finds that cheese, butter, nonfat dry milk and dry whey prices, which set the federal milk formula, are largely driven by inventory levels. Twelve-month averages through November 2020 are used to show the trend, and COVID-related spikes in March and April 2020 are treated as one-time effects.

- Date: 2021-01-25 · published 2021-01-25T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/49173-commodity-inventories-determine-prices-where-do-commodity-inventories-stand
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Inventory levels for the four formula commodities determine the milk price, so tracking stocks gives a read on where milk prices and dairy income are heading.

## Read by commodity

- MILK: neutral

## Sources

- en.edairynews.com: https://en.edairynews.com/commodity-inventories-determine-prices-where-do-commodity-inventories-stand/

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