May 12, 2020
In their May World Agriculture Supply and Demand Estimates report, USDA projected milk production to be higher than they predicted last month based on higher-than expected cow numbers.
“The fat basis export forecast is raised from the previous month on recent trade data and stronger expected global demand,” they said. “The fat basis import forecast is also raised from last month on stronger expected imports of cheese.”
On a skim-solids basis, the export forecast for 2020 is raised on stronger global import demand for skim milk powder, whey products, and a number of dairy products, while the import forecast is raised on increased imports of cheese and milk protein products, according to USDA.
“Cheese and whey prices are raised from the previous month resulting in a higher Class III price forecast,” USDA noted. “Butter and NDM prices are lowered from last month, resulting in a lower Class IV price forecast.”
The 2020 all milk price is forecast at $14.55 per cwt.