Milk price estimates for 2013 dropped slightly in the USDA’s latest “World Agricultural Supply and Demand Estimates” report.

The report, released on Thursday, showed that Class III milk prices are expected to average $17.65 to $17.95 per hundredweight this year, compared to last month’s estimate of $17.80 to $18.20. The all-milk price is expected to average $19.50 to $19.80.

“Despite weaker forecast milk prices, forage supplies and feeding margins will likely continue to support modest gains in milk production,” the USDA explained in the report.

The expected corn price was left unchanged from last month. The range is projected to be $4.40 to $5.20 per bushel in the marketing year that begins Sept. 1

Read the report here.