According to the USDA’s latest World Agricultural Supply and Demand Estimates report, milk prices and production are both expected to climb in 2014, but feed costs are expected to increase, too.
Milk production 2014 was raised as strong returns are expected to encourage a more rapid expansion in cow numbers and increased milk per cow. Milk production is predicted to reach 206.1 billion pounds in 2014, up slightly from 205.7 billion pounds reported in March.
The USDA also forecasts an increase in milk prices across the board.
Class III milk prices are expected to range between $20.40 and $20.90 per hundredweight, up from $18.95 to $19.55 per hundredweight reported last month. The all-milk price rose to $22.55 to $23.05 per hundredweight.
The USDA predicts higher corn prices at $4.40 to $4.80 per bushel but still well below prices reported in 2013.
Here is a link the latest World Agricultural Supply and Demand Estimates report, released by the USDA on April 9.