USDA expects more cows, somewhat lower prices
The USDA raised its milk production forecast with cow inventories expected to increase while prices were mainly lowered again.
In its March supply and demand report, USDA forecast 2020 cheese, butter, and nonfat dry milk prices lower while whey was increased. The 2020 Class III price was lowered because of expected lower cheese prices and Class IV prices were also lowered because of the lower butter and nonfat dry milk forecast.
The 2020 all milk price was reduced by 60 cents to $18.25 per hundredweight.
Exports on a fat basis were reduced on slower than expected demand for the first half of 2020. The skim-solids basis export forecast was raised because of continued strong international demand.