Nonfat dry milk (NDM) prices are essentially unchanged from March forecasts at $1.830-$1.870/lb., although the price range is narrowed as U.S. product encounters competition from other exporting countries.
Milk price forecasts are raised this month as well, but will weaken as the year progresses (see table). The Class III price is increased to $20.40-$20.90/cwt., and the Class IV price is boosted to $21.05-$21.65/cwt. The all milk price is now forecast at $22.55-$23.05/cwt.
The Class III and Class IV quarterly projections are compared with CME closing prices for April 15. USDA projections were made prior to the most recent downturn in milk futures prices.
Corn price forecasts for 2013/14 are increased to $4.40-$4.80/bushel for April. A 125-million bushel increase in forecast exports tightens corn ending stocks, accounting for the price rise. Soybean meal price forecasts for April are raised to $460-$490 per ton.
|Milk price averages & forecasts, $/cwt., April 15, 2014|
|All milk||Class III||Class III||Class IV||Class IV|
|1/ USDA prices and forecasts from Livestock, Dairy & Poultry report (www.ers.usda.gov), issued April 15, 2014.|
|2/ Simple average of Chicago Mercantile Exchange futures prices at close of trading on April 15, 2014.|
|* Average may include actual federal milk marketing order Class III and Class IV prices for affected months.|