USDA Issues WASDE Report for November: The 2027 All-Milk Price Forecast Raised to $20.50

In the USDA’s World Agricultural Supply and Demand Estimates (WASDE) issued November 10, the milk production forecast is increased for both 2026 and 2027. Based on the latest Milk Production report, both milk cow inventories and output per cow are raised for 2026 and 2027. Strong milk prices and supplemental income from calf sales are expected to continue to support herd growth.

For 2026 and 2027, commercial imports on a fat basis are unchanged while commercial imports on a skim solids basis are lowered to reflect expected reduced shipments of yogurt, whey, and milk proteins. For both years, commercial exports on a skim solids basis are raised to reflect the continued strength of exports of nonfat dry milk (NDM), whey protein concentrates, and lactose exports. For 2026, commercial exports on a fat basis are reduced due to lower-than-expected butter exports in the third quarter. For 2027, commercial exports on a fat basis are raised as butter exports are expected to increase due to increased price competitiveness.

For 2026 and 2027, the price forecasts for both NDM and whey are increased to reflect the recent price strength and continued strength of consumer demand for high protein products. The price forecast for butter is lowered for both 2026 and 2027 due to growth in the milkfat supply outpacing demand. The cheese price is raised for 2026 based on recent price strength but lowered for 2027 due to expected continued supply growth.

For both 2026 and 2027, the Class IV price forecast is raised as higher NDM prices more than fully offset the effect of lower butter prices. For 2026, the Class III price is raised on higher cheese and whey prices. In 2027, the Class III price is lowered as higher whey prices only partially offset lower cheese prices. The all-milk price forecast is raised to $20.10 per cwt for 2026 and $20.50 per cwt for 2027.

The full report may be found here https://www.usda.gov/oce/commodity/wasde/wasde1126.pdf