# All Milk Prices Expected To Drop In 2023

> USDA outlook chairman Mark Jekanowski said milk and dairy prices have started to decline faster than expected. USDA projects 2023 US milk output to grow by under 1% while the all-milk price falls about 15%, nearly $4 per cwt.

- Date: 2023-01-30 · published 2023-01-30T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/5878-all-milk-prices-expected-to-drop-in-2023
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Output growth combined with weak demand and strong international competition points to lower milk prices, while feed costs stay firm and squeeze producer margins. The projected price drop is large enough to move dairy and feed-related market expectations.

## Read by commodity

- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2023-02-07 | 5 | -8.8% | -2.9 | USDA's outlook for a roughly 15% fall in the all-milk price and prices declining faster than expected reinforced bearish sentiment and likely encouraged selling. |
| MILK | 2023-02-01 | 1 | -8.1% | -5.7 | USDA outlook on 2023-01-30 projecting a roughly 15% drop in the all-milk price and faster-than-expected declines in dairy prices fed bearish sentiment ahead of the 1 Feb drop. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2018-01-03 | [2018 milk price expected to average $1 less than 2017](https://feedsoft.ai/events/66986-2018-milk-price-expected-to-average-1-less-than-2017.md) | -10.5% | -13.1% |
| MILK | 2017-11-29 | [Exports key to higher milk prices in 2018](https://feedsoft.ai/events/67977-exports-key-to-higher-milk-prices-in-2018.md) | -8.3% | -8.3% |
| MILK | 2023-05-12 | [USDA expects declining milk prices into 2024 - Brownfield Ag News](https://feedsoft.ai/events/36094-usda-expects-declining-milk-prices-into-2024-brownfield-ag-news.md) | -0.6% | -7.2% |
| MILK | 2024-10-21 | [Dairy prices expected to remain high entering 2025 \| Dairy Processing](https://feedsoft.ai/events/27860-dairy-prices-expected-to-remain-high-entering-2025-dairy-processing.md) | -0.1% | -12.5% |
| MILK | 2020-12-01 | [Milk prices to be lower, less volatile in 2021](https://feedsoft.ai/events/4224-milk-prices-to-be-lower-less-volatile-in-2021.md) | -33.9% | -32.3% |

## Sources

- pnwag.net: https://pnwag.net/all-milk-prices-expected-to-drop-in-2023/

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