USDA Issues WASDE Report – 2022 All Milk Price Raised to $25.80

 

USDA issued its World Agricultural Supply and Demand Estimates on April 8. The milk production forecast for 2022 is raised on higher dairy cow numbers. The fat basis import forecast is lowered on lower expected imports of cheese and butterfat products, while exports are raised on stronger cheese and butter shipments. On a skim-solids basis, the import forecast is raised as imports of milk proteins are projected to more than offset weaker projected cheese imports. Exports are raised on higher projected shipments for whey and skim milk powder.

Price forecasts for cheese and butter were raised from the previous month on tighter stocks and firm demand. Non-fat dry milk prices were raised fractionally while whey prices were lowered, as U.S. prices are expected to become competitive with international prices. With the higher cheese price more than offsetting a lower whey price, the Class III price is raised. WASDE-623-5 The Class IV price is raised on higher butter and nonfat dry milk. The 2022 all milk price forecast is increased to $25.80 per cwt.

Editor’s Note: Russia’s recent military action in Ukraine significantly increased the uncertainty of agricultural supply and demand conditions in the region and globally. The April WASDE represents an ongoing assessment of the short-term impacts as a result of this action.