USDA released the World Agricultural Supply and Demand report which was slightly bearish to the grain complex, but prices fell as selling erupted pushing prices substantially lower. The report contains their estimates for milk production, milk prices, and production prices as well as some other information. USDA did reduce their estimate for milk production this year to 226.0 billion pounds, down 400,000 pounds from the June estimate. This would result in production below 2021 and the first time production would fall below the previous year in quite some time. The surprise was the reduction of milk production for next year by one billion pounds. Their current estimate is for production next year at 228.3 billion pounds. The estimate for Class III milk price is year was reduced $0.10 per cwt to an average of 22.80. Next year, the price was raised $0.20 to an average of $20.85. The Class IV price was raised $0.05 this year to $24.70 and raised next year to $22.30, a gain of $0.40 from the June estimate. The All-milk price was reduced $0.05 this year to an average of $26.15 and raised $0.35 next year to $24.15. Although the increase of price next year was positive, they would still be significantly below the estimates for this year.
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