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USDA Lowers 2023 Class III Price Predictions, Raises All-Milk Prices

In its October World Ag Supply and Demand Estimates (WASDE) report, the USDA raised its milk production forecast for 2023 to 227.6 billion lb., up slightly from last month on more rapid growth in milk per cow. If realized, milk production for 2023 would be up less than 0.5% compared to 2022. The forecast for 2024 remained unchanged from September.

The recent strength in butter prices and the expectations of continued firm demand supported an increase in the butter price for 2023. Currently, butter stands at $2.66 per lb., up 12 cents from September. For 2024, higher expected imports of butter supported a higher fat-basis import forecast. Butter prices for next year now stand at $2.65 per lb., jumping 10 cents.

Cheese prices did not fare as well with imports now forecasted lower. In turn, Class III milk prices will likely face added pressure. Currently, the 2023 cheese price sits at $1.77 per lb., down only 4 cents from last month but 34 cents lower from this time last year.


October 13, 2023



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