USDA has raised its 2021 and 2022 milk production estimates because of increasing cow inventories this year while increases in milk per cow next year are expected to offset slight herd reductions.
In its May supply and demand report, USDA raised cheese, nonfat dry milk, and whey prices, but lowered butter prices for 2021. Next year, the agency expects butter prices to increase while cheese prices should decline as more milk is expected to be used for cheese production.
