USDA is expecting 2020 milk production to decline some and farmers to start rebuilding herds in 2021.

In its July

supply and demand report, USDA forecast 2020 cheese, butter, and nonfat dry

milk prices higher than last month because of recent price strength and

anticipated demand.  The whey price was

lowered while the 2020 Class III and Class IV prices were raised.

The 2020 all

milk price was raised by $1.60 to $18.25 per hundredweight.  

The export forecast was raised because of the expected increases of dry skim milk products and lactose exports.

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