The USDA has
raised its milk production forecast for this year and next because of stronger expected
milk per cow offsetting the slow expansion in the dairy herd.
In its November
supply and demand report, USDA forecast 2019 and 2020 cheese and nonfat dry
milk prices higher but butter and whey lower because of continued price weakness.
The 2019 Class III and IV prices were raised on higher cheese prices more than
offsetting lower whey prices. USDA says the lower butter price in 2020
outweighs higher nonfat dry milk prices and reduced the 2020 Class IV price.
The 2019 all
milk price was raised twenty cents to $18.60 and the 2020 price was left
unchanged at $18.85 per hundredweight.
Exports on a fat basis for 2020 were lowered because higher U.S.
