In its December supply and demand report, USDA raised butter, cheese, and whey prices for 2021 because of current prices and strength in demand. Nonfat dry milk was unchanged. The Class III price was raised for 2021 because of higher cheese and whey prices. The Class IV price was raised because of higher butter prices.
For 2022, all product prices were raised mostly because of lower expected milk supplies. Class III and Class IV prices next year were raised because of higher forecasted product prices.
The 2021 all milk price forecast was raised ten cents to $18.60 per hundredweight while 2022’s price increased 50 cents to $20.75.
