USDA raises dairy price and production expectations

USDA raised its expectations for milk production in 2022 for the first time in several months on expected herd growth.

In its April supply and demand report, USDA raised butter and cheese prices because of tighter stocks and firm demand.  Nonfat dry milk prices were only increased fractionally, and whey prices were lowered because of competitive prices internationally. 

The Class III price was raised with higher cheese prices more than offsetting lower whey prices.  The Class IV price was raised because of higher butter and nonfat dry milk prices. 

The 2022 all milk price forecast increased $0.75 to $25.80.

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