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The USDA expanded its Farmers to Families Food Box Program with a $1.5 billion purchase of food including milk and cheese. Benchmark Class III milk futures jumped 4.9% on the announcement, their biggest gain since April.
Government purchases add cheese and dairy demand that supports Class III prices. The price lift could also encourage more milk production in coming months.
bloomberg.comMichael HirtzerJan 5, 2021After 17 past bullish policy events, Milk (Class III) moved a median -0.6% over 5 sessions (29% higher; middle half -1.6% to +0.2%), and -3.0% 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.
