USDA estimated increased milk production this year and next year. Milk
production this year was increased 400 million pounds to an estimate of
226.9 billion pounds. Milk production next year was also increased by
400 million pounds for the September estimate reaching 229.2 billion
pounds. Marketings were raised on a fat basis to 225.8 billion pounds,
up 400 million pounds with marketings for 2023 raised 500 million pounds
to 228.2 billion pounds. Ending stocks this year are estimated at 14.3
billion pounds, up 1.0 billion pounds from the September estimate.
Ending stocks for 2023 were raised to 15.8 billion pounds, an increase
of 1.2 billion pounds from the previous estimate. Milk price estimates
were increased for both this year and next year. Class III price was
raised $0.25 this year to $21.90 and raised $0.20 for 2023 to $19.80.
The average Class IV price was raised $0.15 this year to $24.60 and
raised $0.15 next year to $21.00. The All-milk price was raised $0.15
this year to $25.60 and raised $0.15 next year to $22.90. The World
Agricultural Supply and Demand report was neutral to bullish for corn
and bullish for soybeans. This may mean higher prices could remain with
us for an extended period of time.
USDA was generous by increasing the average cheese prices this year by 3
cents to $2.1050 per pound and increasing next year's price by 1.50
cents to average $1.9850 per pound. Dry whey price was reduced 0.50
cents to 60.50 cents per pound while the average price for next year was
left unchanged at 48.50 cents.
The average butter price this year was raised 3 cents to $2.88 per pound
and raised 5.50 cents to average $2.44 per pound next year. Nonfat dry
milk price remained unchanged at $1.69 per pound this year and reduced a
penny to $1.4950 per pound next year.
