USDA Lowers Price Forecasts, Production Estimate Unchanged
In Tuesday’s WASDE report, USDA lowered Class III, Class IV and the all-milk price forecasts despite leaving milk production estimates unchanged.
According to the report, USDA lowered Class III prices based on lower whey prices.
“The whey price forecast is lowered on larger supplies and weaker demand,” USDA says.
Class IV prices were reduced on lower price forecasts for butter and nonfat dry milk.
“Butter prices are expected to increase more slowly in the second half of the year and the price forecast is reduced,” the report says. “The nonfat dry milk (NDM) price is reduced slightly on current prices.”
The all-milk price forecast is lowered to $15.60 to $16.10 per cwt.