# USDA 2021 milk price outlook weakens - Progressive Dairy | Ag Proud

> USDA's December WASDE raised 2020 and 2021 US milk production forecasts on growing dairy cow inventories, and cut 2021 milk price projections substantially. Annual average cheese and butter price forecasts were lowered, and higher expected soybean meal prices point to rising feed costs.

- Date: 2020-12-11 · published 2020-12-11T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/49806-usda-2021-milk-price-outlook-weakens-progressive-dairy-ag-proud
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

A larger milk supply and lower dairy prices weigh on producer margins, while higher soybean meal prices raise dairy ration costs for feed buyers.

## Read by commodity

- SBM: bullish ▲
- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2021-07-13 | [USDA adjusts 2021-22 milk production outlooks, cuts price projections - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/46213-usda-adjusts-2021-22-milk-production-outlooks-cuts-price-projections.md) | -1.2% | -4.8% |
| MILK | 2020-03-10 | [2020 milk price takes a hit in latest USDA outlook report - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/54149-2020-milk-price-takes-a-hit-in-latest-usda-outlook-report-progressive-dairy-ag.md) | +0.4% | -14.8% |
| MILK | 2020-09-03 | [August Class III milk price falls - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/51263-august-class-iii-milk-price-falls-progressive-dairy-ag-proud.md) | -0.7% | +20.3% |
| MILK | 2021-08-12 | [USDA cuts 2021-22 milk production outlook but also reduces price projections  \| Ag Proud](https://feedsoft.ai/events/45567-usda-cuts-2021-22-milk-production-outlook-but-also-reduces-price-projections-ag.md) | +0.3% | +3.0% |
| MILK | 2020-09-11 | [USDA: Milk output forecast raised; smaller harvest boosts feed price projections - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/51235-usda-milk-output-forecast-raised-smaller-harvest-boosts-feed-price-projections.md) | -1.6% | +24.9% |
| SBM | 2020-10-12 | [USDA milk production, price and feed cost projections all raised - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/50754-usda-milk-production-price-and-feed-cost-projections-all-raised-progressive.md) | +1.2% | +5.3% |
| SBM | 2016-05-05 | [Dairy Economic Update: No spring in prices, margin -  \| Ag Proud](https://feedsoft.ai/events/4169-dairy-economic-update-no-spring-in-prices-margin-ag-proud.md) | +6.2% | +22.0% |
| SBM | 2020-08-21 | [Poultry Outlook: August 2020 - Poultry Producer](https://feedsoft.ai/events/51767-poultry-outlook-august-2020-poultry-producer.md) | +0.4% | +14.8% |

## Sources

- agproud.com: https://www.agproud.com/articles/36131-usda-2021-milk-price-outlook-weakens

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