USDA is raising its 2022 and 2023 milk production estimates as dairy farmers increase their herds. The agency says output-per-cow is also likely to increase.
In its October supply and demand report, USDA raised butter and cheese prices because of price strength, while lowering nonfat dry milk and whey prices. Next year, the agency expects butter and cheese prices to increase and nonfat dry milk prices to decline.
This year, USDA is forecasting Class III and Class IV prices to increase because of better butter and cheese prices.
