# Thanks to components, basis shrink shows signs of slowing - Progressive Dairy | Ag Proud

> Upper Midwest Federal Milk Marketing Order 30 basis shrink continued for a fourth year in 2018, though higher milk components limited the reduction. Producers realized their highest basis levels since 2014 in many cases.

- Date: 2019-01-02 · published 2019-01-02T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/61111-thanks-to-components-basis-shrink-shows-signs-of-slowing-progressive-dairy-ag
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Narrower milk basis means producers keep more of the announced price, supporting farm-level dairy incomes. The impact on feed demand is minor.

## Read by commodity

- MILK: neutral

## Sources

- agproud.com: https://www.agproud.com/articles/38152-thanks-to-components-basis-shrink-shows-signs-of-slowing

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