USDA released the World Agricultural Supply and Demand report Wednesday showing their estimates of milk production, milk prices, and product prices for this year and next year. They left their estimate of milk production this year unchanged from the June estimate at 228.4 billion pounds. They reduced the estimate for next year to 230.6 billion pounds, down 200 million pounds. If this comes to fruition, production this year would be 1.9 billion pounds above last year with next year's production 2.2 billion pounds more than this year and another record milk output. On a fat basis, marketings were unchanged this year at 227.4 billion pounds, but reduced next year 200 million pounds to an estimate of 229.6 billion pounds. Exports were reduced this year by 300 million pounds to 11.6 billion pounds and reduced 200 million pounds next year to 12.6 billion pounds from their June estimate. Domestic use was increased 200 million pounds this year to 223.4 billion pounds and reduced next year by 100 million pounds to the current estimate of 224.6 billion pounds. The average Class III milk price this year was reduced $0.65 to $16.05 with the average price reduced $1.05 to $15.95 for the next year. The Class IV price was reduced $0.15 this year to an average of $18.20 and left unchanged next year at $17.45. The All-milk price this year was reduced $0.40 to $19.55 with the average for next year at $19.10. down $0.55 per cwt from the June estimate.
