Milk Production, All Milk Price Forecasts Pushed Higher for 2020
In their June World Agriculture Supply and Demand Estimates report on Thursday, USDA both pushed milk production and all milk price forecasts higher for 2020.
“Milk production for 2020 is raised from last month on higher expected cow numbers,” the agency said in the report. “The fat basis import forecast is raised from the previous month on higher imports of butter fat products, while the fat basis export forecast is reduced on lower expected sales of cheese.”
USDA notes the 2020 skim-solids basis import forecast is raised from last month on recent trade data and expectations of higher imports of a number of dairy products. Additionally, the skim-solids basis export forecast is raised primarily on higher skim milk powder and lactose exports.
“Price forecasts for cheese, butter, and nonfat dry milk are raised from the previous month on recent price strength and stronger anticipated demand,” the agency noted. “The whey price forecast is lowered from last month.”
Class III and Class IV prices are raised for 2020. The all milk price forecast is raised to $16.65 per cwt for 2020. Additionally, USDA raised the 2021 milk production and price forecasts. The all milk price forecast is raised to $16.20 per cwt for 2021.