USDA has lowered its 2021 milk production estimates but raised its 2022 estimates based on updated cow numbers.

In its July supply and demand report, USDA lowered cheese, butter, nonfat dry milk, and whey prices based on relatively high stocks and weaker-than-expected demand.   USDA lowered the 2021 all milk price forecast to $18.30 per cwt. 

With the lower cheese and butter prices, and the projected drop in Class III and IV milk prices, USDA lowered 2022 all milk price forecast to $18.50 per cwt.

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