USDA has lowered its 2023 and 2023 milk production estimates because of lower cow inventories. The agency says output-per-cow is likely to increase some in the last part of this year but not enough to make up for a smaller herd.
In its September supply and demand report, USDA raised butter and nonfat dry milk prices because of slightly better prices, while cheese and whey prices were unchanged. Next year, the agency expects butter and nonfat dry milk prices to increase because of tighter supplies. Cheese prices were lowered and whey prices were unchanged for 2023.
This year USDA is forecasting Class III and Class IV prices to increase because of better component values. The 2023 Class III price was unchanged while Class IV price was increased on higher butter prices.
