News

USDA continues to raise milk production and prices

USDA again raised its 2020 and 2021 milk production estimates as milk per cow and herd sizes are expected to increase.

In its November supply and demand report, USDA forecast 2020 cheese, nonfat dry milk, and whey prices higher because of stronger demand.  Butter prices were reduced on current and continued weakness expected.  The 2020 Class III price was raised on higher cheese and whey prices. The Class IV price was unchanged as higher nonfat dry milk prices offset lower butter forecasts.

The 2020 all milk price was raised by $0.25 to $18.25 per hundredweight.  

The 2020 export forecast on a fat basis was raised because of higher expected exports of cheese and butterfat while 2021 fat basis exports were left unchanged. The 2020 and 2021 skim-solids basis export forecasts were raised on stronger expected sales of skim milk powder.

USDA forecast 2021 cheese, nonfat dry milk and whey prices were raised because of continued strength in demand while butter prices were reduced on lower expected prices during the first half of the year.  The Class III price was raised because of higher prices for cheese and whey while the Class IV price was lowered because of a reduced butter price more than offsetting an increase in nonfat dry milk.

The 2021 all milk price was increased 10 cents to $17.70 per hundredweight.