USDA raises milk production and price expectations
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. The 2023 Class III price was raised because of higher cheese prices while Class IV price was increased on higher butter prices more than offsetting declines in nonfat dry milk.
Stronger exports of whey, lactose, and butterfat products are expected this year and next, while skim milk powder exports are forecast to slow in 2022.
The 2022 all milk price forecast was raised 15 cents to $25.60 per hundredweight while 2023’s price was increased 20 cents to $22.90.