Monthly World Agricultural Supply and Demand Estimates from USDA this morning show a slight increase in projected milk production for this year and next. The Outlook Board cites more cows than expected and increasing production per cow. 2010 milk production is now estimated at 191.2 billion pounds and 2011 is bumped up to 193.5 billion. To go with that, they are also increasing the export projections for 2010.
The cheese price is lowered 2 to 3 cents for this year now pegged at between $1.465 and $1.495 while 2011 is unchanged from last month’s estimate at $1.52 to $1.62. Butter for this year is bumped up 4.5 to 5.5 cents now expected to range between $1.53 and $1.59 per pound. As a result, the Class III price is lower than last month now estimated at $13.80 to $14.10, Class IV is higher, $14.65 to $15.05 and the all milk price range narrows a nickel on each end at $15.80 to $16.10.
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