USDA calls for dairy herd growth
USDA has raised its 2021 and 2022 milk production estimates because of expectations for increasing cow numbers.
In its June supply and demand report, USDA raised butter, nonfat dry milk and whey prices on recent price support and stronger anticipated demand. The cheese forecast was lowered because of large stocks and current prices. Next year, the agency also expects butter, nonfat dry milk and whey prices to increase and left cheese prices unchanged.
This year USDA is forecasting Class III prices to decline because of the lower cheese prices but higher nonfat dry milk and butter prices are likely to support Class IV prices. The 2022 Class III and Class IV prices were raised.
The 2021 all milk price forecast was lowered a dime to $18.85 per hundredweight while 2022’s price increased a quarter to $18.75.