News

Strong dairy exports can’t offset price pressure in USDA outlook

The USDA is forecasting lower dairy prices for this year despite strong exports.

In its latest supply and demand report, the department says increased milk production per cow is expected to rise, along with fat basis exports, given the competitiveness of butter and cheese on the international market.

Recent price weakness for butter and cheese is leading to lower forecasts this year, while nonfat dry milk and whey prices were raised because of strong protein demand.

USDA is calling for lower Class III prices because of lower cheese prices more than canceling out higher whey values. Class IV prices were increased because of strong nonfat dry milk prices more than offsetting lower butter numbers.

The all milk price was lowered 50 cents to $18.25 per hundredweight.