USDA reduces 2022 milk production projection
The USDA’s 2022 milk production projection is down slightly on the month due to expectations for slower growth in per cow production.
Production is expected to be 226 billion pounds, 400 million under the June guess, and, if realized, 300 million below the 2021 total.
Fat basis and skim-solid basis marketings were lower than a month ago, while exports for both were up slightly.
The USDA lowered 2022 price estimates for cheese, butter, and all types of milk. That milk price projection included a lower outlook for Class III against a higher guess for Class IV.
The USDA’s midyear cattle inventory report is out later this month and will be watched closely for signals on heifer retention and dairy cow replacement.