USDA Raises Milk Price Forecasts a Little
Wednesday, November 9th, 2011
The monthly World Agricultural Supply and Demand Estimates from USDA on Wednesday left milk production forecasts for 2011 and 2012 are unchanged from last month. Commercial exports are forecast higher for 2011. Fat and skim-solids ending stocks for 2011 are lowered.
Cheese, butter, and whey prices are forecast higher for both 2011 and 2012, but the nonfat dry milk price forecast is reduced for 2011 and unchanged for 2012. Class III prices are raised for 2011 and 2012 on the increased price forecast for cheese and whey. The Class IV price is unchanged for 2011 as the higher butter price is mostly offset by a lower NDM price forecast.
However, for 2012 with an unchanged NDM price forecast, the Class IV price forecast is raised due to higher butter prices.
The Class III price for this year was raised 15 cents from last month’s estimate now pegged at between $18.30 and $18.40 per cwt. The Class III price for 2012 was raised 40 cents to $16.70 to $17.60. The all milk price for 2011 increased a dime at $20.10 to $20.20 per cwt, and 30 cents higher to $18.05 to $18.95 per cwt for 2012.
Brownfield Ag News