USDA has raised its forecast for 2022 milk production with higher cow inventories expected to offset slower growth per cow.
In its May supply and demand report, USDA also raised butter and cheese prices because of strong demand while nonfat dry milk and whey prices were lowered.
The Class III and Class IV prices for 2022 were lowered and the all milk price forecast decreased five cents to $25.75 per hundredweight.
Next year, USDA anticipates milk production to grow above 2022 levels because of gains in milk per cow with a similar herd size to this year.
The 2023 Class III price was lowered on weak cheese and whey prices, while the Class IV price declined because of reduced butter and nonfat dry milk prices.
