# Historic Dairy Oversupply Results in Dumping

> Virginia dairy officials say the pandemic closed restaurants and schools, which cancelled orders and left the US with about a 10% milk oversupply. About 5% of national milk was dumped in late March and early April. Farmers were expected to feel the price pressure when April milk payments arrived in May.

- Date: 2020-04-29 · published 2020-04-29T12:00:00.000Z
- Category: macro · region US · magnitude high
- Page: https://feedsoft.ai/events/5181-historic-dairy-oversupply-results-in-dumping
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

A 10% oversupply is far larger than the usual 1-2% surplus and has pushed milk prices sharply lower. Cheese-linked pricing means the impact extends to processing demand and milk-based feed ingredients.

## Read by commodity

- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2020-05-01 | 5 | -14.9% | -5.0 | A roughly 10% oversupply and milk dumping signal a supply glut that pressures cheese and milk prices, with farmers expected to feel the price pressure when April milk payments arrive. |
| MILK | 2020-04-30 | 5 | -14.9% | -5.6 | A roughly 10% oversupply with dumping and the expectation of price pressure in May payments point to a supply-demand imbalance pushing prices lower. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2021-02-25 | [Dairy is testing historical market limits](https://feedsoft.ai/events/48806-dairy-is-testing-historical-market-limits.md) | +5.2% | +4.1% |
| MILK | 2020-12-04 | [Economist: Oversupply of milk, cheese looms in 2021 \| Capital Press](https://feedsoft.ai/events/4230-economist-oversupply-of-milk-cheese-looms-in-2021-capital-press.md) | +2.2% | -0.2% |
| MILK | 2020-04-30 | [Milk is being dumped. Why is it so hard to address dairy market chaos? - CSMonitor.com](https://feedsoft.ai/events/5178-milk-is-being-dumped-why-is-it-so-hard-to-address-dairy-market-chaos-csmonitor.md) | -1.2% | +4.7% |
| MILK | 2020-03-31 | [Mielke: Dairy prices hemorrhaging \| Capital Press](https://feedsoft.ai/events/4155-mielke-dairy-prices-hemorrhaging-capital-press.md) | -14.4% | -18.8% |
| MILK | 2018-05-10 | [Dairy markets could finally rebalance](https://feedsoft.ai/events/65157-dairy-markets-could-finally-rebalance.md) | -0.1% | +1.0% |

## Sources

- dnronline.com: https://www.dnronline.com/news/coronavirus/historic-dairy-oversupply-results-in-dumping/article_88a2960b-3b37-51dd-8b1f-2b5eb33def31.html

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