June Meat and Dairy Outlook
June's USDA outlooks for meat and dairy indicate increases in several production and price categories compared to the previous month.
Mark Jekanowski is with the World Agricultural Outlook Board and explains the latest findings.
The USDA’s June World Ag Supply and Demand Estimates (WASDE) report raised milk production forecasts for both 2020 and 2021, while also raising milk price projections for both years.
It should be noted that last month’s low dairy product and milk price estimates were made while markets were exhibiting severe impacts of the COVID-19 pandemic on the food service sector. While the outlook for 2020 and 2021 prices has improved, the projections still indicate some supply-demand pressures.
Milk production for 2020 is forecast at 222.5 billion pounds, up about 100 million pounds from last month’s forecast, primarily due to higher-than-expected cow numbers. If realized, it would be up about 1.9% from 2019’s total of 218.4 billion pounds.
For 2020, the all-milk price is projected to average $16.65 per hundredweight (cwt), with the Class III price at $15.65 per cwt and the Class IV price averaging $13.55 per cwt.