# Mixed fundamental signals for the dairy complex

> Class III milk futures rallied to about $24.00 this summer and again in October, supported by the government cheese buying program. With that program ending, front-month Class III futures slipped back to the mid-$15 range. Deferred 2021 contracts posted bullish daily reversals on December 3.

- Date: 2020-12-10 · published 2020-12-10T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/6769-mixed-fundamental-signals-for-the-dairy-complex
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Government cheese purchases had propped up Class III prices, so their end removes a demand support for near-term milk prices. Deferred contracts holding firm suggests the market is still pricing uncertainty about whether the Farm to Family program continues into 2021.

## Read by commodity

- MILK: neutral

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2020-12-08 | 5 | -33.2% | -4.7 | The end of the government cheese buying program removed demand support, so front-month Class III slipped from the $24 peaks to the mid-$15 range. |

## Sources

- pnw.coop: https://pnw.coop/story-mixed-fundamental-signals-dairy-complex-22-209186
- farmprogress.com: https://www.farmprogress.com/marketing/mixed-fundamental-signals-for-the-dairy-complex

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