USDA projects increased milk production and prices
USDA continues to increase its 2020 and 2021 milk production estimates as milk per cow and herd sizes are expected to increase.
In its October supply and demand report, USDA forecast 2020 cheese and nonfat dry milk prices higher while whey was unchanged, and butter was lowered. The 2020 Class III price was raised on higher cheese prices. The Class IV price was also raised on higher nonfat dry milk prices offsetting lower butter forecasts.
The 2020 all milk price was raised by $0.25 to $18 per hundredweight.
The 2020 export forecast on a fat basis was lowered because of lower shipments of butterfat products. The skim-solids basis export forecast was also lowered on reduced exports of dry whey and lactose products.
USDA forecast 2021 cheese, butter, nonfat dry milk and whey prices higher. The Class III and Class IV price was also raised because of higher product prices.
The 2021 all milk price was increased 55 cents to $17.60 per hundredweight.