In its November WASDE report, the USDA milk production forecast for 2020 was raised from last month on higher dairy cow numbers. Milk output is now expected to increase 1.97% YOY to 101bn kgs in 2020. Milk production is projected to increase by a further 1.62% YOY in 2021, reflecting a larger herd.
Based on recent price movements, cheese and butter price forecasts for 2020 were lowered, but the whey price was raised with the NFDM price unchanged. For 2021, cheese and butter price forecasts were reduced on weaker expected demand and larger supplies, but the NFDM and whey prices were raised.
The 2020 all-milk price forecast was unchanged from the prior month at US$0.354/l, down from US$0.366/l in 2019. The 2021 all-milk price was forecast lower at US$0.327/l.