USDA continues to increase its 2020 and 2021 milk production estimates as milk per cow and herd sizes are expected to increase.
In its October supply and demand report, USDA forecast 2020 cheese and nonfat dry milk prices higher while whey was unchanged, and butter was lowered. The 2020 Class III price was raised on higher cheese prices. The Class IV price was also raised on higher nonfat dry milk prices offsetting lower butter forecasts.
