Price forecasts for the major dairy products are raised in the September forecast. Demand, particularly foreign demand, remains firm, while a U.S. production rebound is not expected until 2014.
Cheese prices are raised from August to $1.755-$1.775 per pound this year and are increased for 2014 to $1.670-$1.770 per pound. Butter prices are raised slightly for 2013 to $1.500-$1.540 per pound and increased for next year to $1.470-$1.600 per pound.
Stronger demand across the board tightens stocks; however, higher expected production next year lowers prices on a year-over-year basis for cheese and butter. Nonfat dry milk price forecasts for 2013 are raised in September to $1.675-$1.695 per pound and to $1.675-$1.745 per pound next year.
Whey prices are unchanged from August at 58.5-60.5 cents per pound for the current year, increased slightly in 2014 to 58.5-61.5 cents per pound. Milk prices are increased to reflect the higher product prices.
The Class III price is forecast higher than August 2013 at $17.90-$18.10 per cwt and forecast at $17.05- $18.05 per cwt in 2014. The Class IV price for 2013 is projected higher this month at $18.60-$18.90 per cwt and is also raised to $18.45-$19.55 per cwt for next year. Similarly, the all milk price is raised this month to $19.70-$19.90 per cwt and to $19.35-$20.35 per cwt for 2013 and 2014, respectively.