# Milk rally comes to an end

> Milk futures rallied about $10 from mid-April to mid-July on government cheese buying, but the rally has stalled after those support programs paused. Cheese and block prices have fallen sharply, with blocks averaging $1.630/lb versus about $2.70 a month earlier. USDA reported July milk production up 1.5 percent year over year, with more cows on farms.

- Date: 2020-08-20 · published 2020-08-20T12:00:00.000Z
- Category: market · region US · magnitude medium
- Page: https://feedsoft.ai/events/51772-milk-rally-comes-to-an-end
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Heavy milk supply and weaker cheese demand point to lower dairy prices, which reduces the value of dairy by-products and affects dairy-based feed ingredient demand. Buyers should expect softer milk price levels unless demand recovers.

## Read by commodity

- MILK: bearish ▼

## Sources

- farmprogress.com: https://www.farmprogress.com/management/milk-rally-comes-to-an-end

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