In USDA’s World Agricultural Supply and Demand Estimates (WASDE Report) issue April 11, 2023, the milk production forecast is higher on a larger expected cow inventory. Fat basis imports for 2023 are primarily raised on the strength of a number of dairy products during the first quarter. Imports of casein and milk protein concentrates are expected to remain firm, supporting higher skim-solids basis imports through the year.
Expectations of increased competition in butter, cheese, nonfat dry milk, and whey markets are reflected in lower forecast exports on both a fat- and a skim-solids basis for 2023. Cheese and butter prices are raised on recent prices. Nonfat dry milk prices are lowered. Whey prices are raised on recent price observations and stronger expected demand.
With the changes in component prices, Class III prices are projected higher, while Class IV prices are projected lower. The all milk price is projected higher at $20.65 per cwt. The full report can be found at https://www.usda.gov/oce/commodity/wasde/wasde0423.pdf
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