Weak demand reduces dairy forecast
USDA has lowered its 2021 and 2022 milk production estimates because of expectations for lower cow numbers.
In its August supply and demand report, USDA lowered butter, cheese, nonfat dry milk and whey prices because of relatively weak demand. Dairy product prices were also reduced for 2022 because of continued soft domestic demand and higher forecasted beginning stocks.
This year and into next, the USDA is forecasting Class III and Class IV prices to decline because of the lower dairy product prices.
The 2021 all milk price forecast was lowered 35 cents to $17.95 per hundredweight while 2022’s price decreased 65 cents to $17.85.