USDA lowered milk production estimates again for its 2021
and 2022 forecast because of expectations for lower cow numbers and milk per
cow.
In its October supply and demand report, USDA raised cheese,
nonfat dry milk, and whey prices for 2021 because of current prices and lower
expected production. Butter was reduced slightly because of current
prices. For 2022, all product prices were raised mostly because of
tighter supplies.
This year and into next, the USDA is forecasting Class III
and Class IV prices higher because of improving dairy product prices.
The 2021 all milk price forecast was raised 30 cents to
$18.45 per hundredweight while 2022’s price increased 80 cents to $19.20.
--Brownfield AgNews