Class III milk price estimates for 2013 were up slightly in the latest World Agricultural Supply and Demand Estimates report from the USDA.
The report, released on Wednesday morning, showed that Class III milk prices are expected to to average $17.85 to $18.35 per hundredweight this year, compared to last month’s estimate of $17.55 to $18.15.
Class IV and All Milk prices are also expected to rise.
“With slightly lower forecast 2013 milk production and improved domestic product demand, price forecasts for cheese, butter, NDM, and whey are raised. As a result, both Class III and Class IV price forecasts are higher than last month,” the report said.
The agency expects corn prices to dip again, continuing the downward adjustment reported in last month’s report. The range is now expected to be $6.65 to $7.15 per bushel, compared to last month’s expected range of $6.75 to $7.45.