◂ Event Timeline

Dec 18, 2019REPORTUS

More milk, consolidation continues, but still an improved 2020 price outlook

Purdue economists report that USDA raised 2019 and 2020 US milk production forecasts to 218.6 and 222.4 billion pounds, respectively. Cow numbers are shrinking, but higher output per cow is offsetting the decline.

Dairy ending stocks rose sharply year over year in September, led by butter, dry whey and lactose.

WHY IT MATTERS

Rising ending stocks and higher production forecasts weigh on dairy prices, though an improved 2020 price outlook partly offsets that pressure for dairy-based feed ingredients.

AFFECTSMilk (Class III)◆

SOURCE
ag.purdue.eduSarah E Zahn, Morgan FrenchDec 18, 2019

Price reaction & history

Milk (Class III)◆neutralSO FAR1d +0.1%5d -0.1%20d -12.3%

After 136 past neutral report events, Milk (Class III) moved a median -0.1% over 5 sessions (43% higher; middle half -0.7% to +0.5%), and -0.3% over 20.

Nov 10, 2020USDA continues to raise milk production and prices - Brownfield Ag News-1.8%
Oct 10, 2019Dairy production increases reflected in 2020 all milk price - Brownfield Ag News-0.5%
Apr 14, 2021March negative PPDs continue to climb out of 2020 depths | Ag Proud+0.5%
Jan 9, 2020United Kingdom milk prices and composition of milk - November 2019 statistics (published 9 January 2020) - GOV.UK-0.1%
Jan 21, 2021United Kingdom milk prices and composition of milk statistics notice - December 2020 statistics (published 21 January 2021) - GOV.UK-0.2%

Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.

Milk (Class III) MILK · GP ▸

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