WASDE Report Projects Higher All-Milk Price

 

In the report of World Agricultural Supply and Demand Estimates issued Mar. 9 by USDA, the milk production forecast for 2022 is lowered from last month, on lower dairy cow numbers and slower growth in milk per cow. The fat basis import forecast is lowered on lower expected imports of cheese and butterfat products, while exports are reduced on lower shipments of whole milk powder and whey. On a skim-solids basis, the import forecast is raised, primarily as higher imports of milk proteins more than offset weaker cheese imports. The export forecast is reduced on weaker expected sales of whey products and skim milk powders.

Changes in 2021 estimates of supply and use reflect revised production and stock data. Price forecasts for cheese, butter, nonfat dry milk, and whey are raised from the previous month on current prices, lower expected production, and continued demand strength.

With higher product prices, both Class III and the Class IV prices are raised. The 2022 all milk price forecast is increased to $25.05 per cwt

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