# Too much milk pushes prices lower

> USDA projects the 2021 Class III milk price to average $15.60 per cwt as milk production runs above year-ago levels, with November output up 3% year on year. Cheese prices fell sharply in November after holiday purchases ended, while butter prices strengthened.

- Date: 2020-12-28 · published 2020-12-28T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/49649-too-much-milk-pushes-prices-lower
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Rising milk output and weaker cheese prices point to lower dairy prices into 2021, which lowers the cost of dairy byproducts used in feed rations.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2021-07-29 | [Too much milk drives prices lower](https://feedsoft.ai/events/46064-too-much-milk-drives-prices-lower.md) | -3.0% | -3.0% |
| MILK | 2023-01-26 | [Milk price forecast for 2023 much lower than 2022 prices](https://feedsoft.ai/events/37781-milk-price-forecast-for-2023-much-lower-than-2022-prices.md) | -7.9% | -7.9% |
| MILK | 2026-01-10 | [Milk prices lower again - Dairy Star](https://feedsoft.ai/events/21215-milk-prices-lower-again-dairy-star.md) | -0.8% | +2.4% |
| MILK | 2020-12-01 | [Milk prices to be lower, less volatile in 2021](https://feedsoft.ai/events/4224-milk-prices-to-be-lower-less-volatile-in-2021.md) | -33.9% | -32.3% |
| MILK | 2016-11-02 | [Increased milk production pressures prices lower](https://feedsoft.ai/events/73986-increased-milk-production-pressures-prices-lower.md) | +13.4% | +14.8% |

## Sources

- farmprogress.com: https://www.farmprogress.com/dairy-cattle/too-much-milk-pushes-prices-lower

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