# Despite enormous production, government purchases boost milk prices

> Class III futures climbed above $20.00, reaching $20.08, after USDA announced a fifth Food Box purchasing round of $1.5 billion. Block cheese rallied 34.5 cents over five sessions, and U.S. dairy exports were up over 11% through November before a November decline.

- Date: 2021-01-14 · published 2021-01-14T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/49311-despite-enormous-production-government-purchases-boost-milk-prices
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Government purchases are propping up cheese and milk prices despite heavy production. Analysts warn that without this demand, futures face a correction.

## Read by commodity

- MILK: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2020-11-30 | [Government dairy purchases at a 30-year high](https://feedsoft.ai/events/50301-government-dairy-purchases-at-a-30-year-high.md) | -33.6% | -32.1% |
| MILK | 2019-10-28 | [USDA purchases $50 million in fluid milk](https://feedsoft.ai/events/4106-usda-purchases-50-million-in-fluid-milk.md) | +8.1% | +9.1% |
| MILK | 2021-01-05 | [Milk Prices Surge After USDA Food-Box Aid Program Extended - Bloomberg](https://feedsoft.ai/events/49303-milk-prices-surge-after-usda-food-box-aid-program-extended-bloomberg.md) | +7.3% | +4.5% |
| MILK | 2018-01-24 | [Weekly Digest: California producers seek emergency hearing, milk price hike -  \| Ag Proud](https://feedsoft.ai/events/67124-weekly-digest-california-producers-seek-emergency-hearing-milk-price-hike-ag.md) | -0.1% | -3.2% |
| MILK | 2022-01-07 | [The Farmer's Exchange Online Dairy Economist: 2022 Should Be Profitable for Milk Producers](https://feedsoft.ai/events/4074-the-farmer-s-exchange-online-dairy-economist-2022-should-be-profitable-for-milk.md) | -0.4% | +1.4% |

## Sources

- farmprogress.com: https://www.farmprogress.com/marketing/despite-enormous-production-government-purchases-boost-milk-prices

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