# Analyst expects tighter milk margins in 2021 | Capital Press

> Analyst James Carr of StoneX Financial said 2020 dairy markets were highly volatile after foodservice sales collapsed and government purchases lifted prices. He expects that without government buying, US demand will not support current milk output and prices, so margins are likely to shrink in 2021.

- Date: 2020-12-19 · published 2020-12-19T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/49808-analyst-expects-tighter-milk-margins-in-2021-capital-press
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

If government purchases fade as expected, lower milk prices and tighter margins could slow herd growth and reduce demand for dairy-based feed inputs later in 2021.

## Read by commodity

- MILK: bearish ▼

## Sources

- capitalpress.com: https://capitalpress.com/2020/12/18/analyst-expects-tighter-milk-margins-in-2021/

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