USDA dairy price outlook improving, cow numbers also higher
USDA is expecting a continued turn around for dairy prices at the same time farmers increase cow numbers and milk production.
In its June supply and demand report, USDA forecast 2020 cheese, butter and nonfat dry milk prices higher than last month because of recent price strength and stronger than anticipated demand. The whey price was lowered while the 2020 Class III and Class IV prices were raised.
The 2020 all milk price was raised by $2.10 to $16.65 per hundredweight.
Exports on a fat basis were reduced on lower expected cheese sales and the skim-solids basis export forecast was raised on because of higher skim milk powder and lactose exports.
USDA raised its milk production forecast for 2021 on higher cow numbers and stronger per cow production. USDA forecast 2021 cheese, butter and nonfat dry milk prices higher and lowered whey prices. The Class III and Class IV prices were raised for 2021 while fat basis and skim-solids exports were left unchanged.
The 2021 all milk price was raised by $1.20 to $16.20 per hundredweight.