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USDA keeps ’23 all milk price, raises ’24 projection
USDA has lowered its projections for 2023 milk production.
In the November Supply and Demand Report, USDA says cow numbers were revised lower in the last Milk Production Report and milk-per-cow growth slowed in the 3rd quarter. That trend is expected to continue through the end of the year.
USDA says 2023 fat basis imports are unchanged, with more expected 4th quarter butter and butter fat imports offsetting lower third quarter imports. The skim solids basis import projections for 2023 were lowered, and 2024 remained the same.
Also for 2023, USDA says recent gains in butter prices eroded more quickly than anticipated, impacting the butter price forecast. The cheese price is unchanged, and the nonfat dry milk price was raised to reflect current prices. The Class III price was raised on a higher whey price, but the Class IV price was lowered as a weaker butter price more than offsets a slightly higher nonfat dry milk price.
The 2023 all milk price forecast is unchanged from last month at $20.70 per hundredweight while the 2024 all milk price is raised to $20.80 per hundredweight.
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