WASDE Raises 2019 Milk Price Forecast
The first USDA World Agriculture Supply and Demand Estimates (WASDE) of 2019 reduced milk production estimates based on a projected reduction in cow numbers and stagnant production per cow. These estimates are based on data available through December 2018.
On the demand side, the WASDE report raised the forecast for 2019 fat-based exports based on strong expected demand for butter and butterfat products. Likewise, the 2019 export forecast for nonfat dry milk was raised due to expected strong demand.
Product price forecasts for 2019 were lowered for cheese, while butter, nonfat dry milk and whey prices were all raised from December data.
Class III prices for 2019 are unchanged from December while the Class IV price is raised based on higher butter and powder prices. USDA has raised the 2019 all milk price forecast to $16.90 to $17.60 per cwt.