USDA Raises 2021 All Milk Price Forecast
January 12, 2021
In their January World Agriculture Supply and Demand Estimates report, USDA acknowledged that product prices are going to push milk prices higher in 2021. The agency raised the 2021 Class III price and Class IV price are raised from the previous month on higher product prices. The 2021 all milk price forecast is raised to $17.65 per cwt.
“The milk production estimate for 2020 and forecast for 2021 are raised from December on growth in milk per cow and higher dairy cow numbers,” USDA notes.
Fat basis imports for 2020 and 2021 are reduced from last month on lower expected imports of butterfat products and the fat basis export estimate for 2020 is unchanged. However, the 2021 forecast is raised on higher expected exports of butterfat products.
“The skim-solids basis import estimate for 2020 in unchanged but the 2021 forecast is reduced,” the agency notes. “The skim-solids basis export estimate for 2020 is reduced on recent trade data while the 2021 forecast is unchanged.”
For 2021, cheese, butter, nonfat dry milk (NDM), and whey price forecasts are raised from last month on firm domestic demand, USDA says.