News
USDA remains firm on increasing milk production, lower price projections
USDA continues to increase its 2020 and 2021 milk production estimates as growth in milk per cow is expected to continue.
In its September supply and demand report, USDA forecast 2020 cheese, butter, and whey prices lower while nonfat dry milk was unchanged. The 2020 Class III price was lowered on lower cheese and whey prices and the Class IV price was lowered on reduced butter forecasts.
The 2020 all milk price was lower by $0.20 to $17.75 per hundredweight.
The 2020 export forecast on a fat basis was raised because of increased shipments of cheese, butter, and whey products. The skim-solids basis export forecast was raised on higher exports of nonfat dry milk and whey products.
USDA forecast 2021 cheese, butter, and whey prices lower and nonfat dry milk prices were unchanged. The Class III price was lowered on lower cheese prices and whey prices. The Class IV price was also lowered because of lower expected butter prices.
The 2021 all milk price was dropped a nickel to $17.05 per hundredweight.
