USDA expects higher milk production, continued strong demand
May 13, 2020 By Larry Lee Filed Under: Ag economy, Dairy, News, USDA
The USDA’s latest supply and
demand report expects more milk production this year thanks to
higher-than-expected cow numbers, but looking ahead to 2021, USDA expects fewer
cows but more milk. Analysts say
stronger milk production per cow is expected in 2021.
USDA raised the fat basis
export forecast from last month on recent trade data and stronger expected
global demand. The fat basis import forecast also went up because of stronger
expected imports of cheese. On a
skim-solids basis, USDA raised its 2020 export predictions based on stronger
global demand for skim milk powder, whey products, and a number of dairy
products, while the import forecast is raised based on increased cheese and
milk protein products imports.
Cheese and whey prices went up
from last month resulting in a higher Class III price forecast, but butter and powder
prices were lowered from last month resulting in a lower Class IV price
forecast. USDA’s new 2020 all milk price is forecast at $14.55 per cwt.
USDA says they expect 2021
Class III and Class IV prices to go up with stronger product prices and they
are expecting a 2021 all milk price of $15.00 per cwt.
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