Latest Dairy

Latest Dairy

David Sparks Ph.D.
David Sparks Ph.D.
The latest look at the U.S. dairy balance sheet indicates: We're forecasting lower production for both 2021 and 2022 based on what we're observing as lower cow numbers as well as reduced milk per cow and we expect those lower cow numbers and lower growth and milk per cow to carry into 2022 as well. Yet USDA World Agricultural Outlook Board Chair Mark Jekanowski notes production for both years would be up. Lower commercial use both years is offset by increased exports, while imports are expected to rise slightly. From the prices perspective: We raised most of our prices almost across the board for both 2021 and 2022, just reflecting the fact that we're seeing relatively strong dairy product demand of late, combined with those tighter milk supplies that were both seen in forecasting into 2022. We raised our forecast for most of the products, cheese, butter and nonfat dry. Not so much dry way, but those prices have already been relatively strong. So raise those prices for both 2021 and 2022. And that translates into higher class prices. Class 3 Class 4 forecasts for both 2021 and 2022 as well. All milk price forecast for 2021. We raised this month by 20 cents per 100 rights to eighteen dollars and fifteen cents per hundred weight. And for 2022, we raised our all milk price forecast by 55 cents per 100 weight to $18 and 40 cents per hundred weight. So if realized, at least a slight increase year over year and the all milk price by about 25 cents per hundred weight for 2022 compared to 2021.
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