According to the USDA’s latest “World Agricultural Supply and Demand Estimates” report, both milk prices and production are expected to climb in 2014.

Milk production in 2014 was raised as the USDA expects improved returns to support a more rapid increase in output per cow. Milk production is predicted to reach 205.6 billion pounds in 2014, up slightly from 205.3 billion pounds forecast in December.

The USDA also forecasts an increase in milk prices.

Class III milk prices are expected to range between $17.80 and $18.60 per hundredweight, up from $17.05 to $17.85 per hundredweight reported last month. The all-milk price rose in the January report to $20.60 to $21.40 per hundredweight.

The USDA predicts corn prices to change little, staying between $4.10 and $4.70 per bushel.

Here is a link the latest "World Agricultural Supply and Demand Estimates report," released by the USDA on January 10.