A solid 25 cents.
That’s what the U.S. Department of Agriculture has added to its estimate for Class III milk prices this year. In a report issued this morning, the USDA said Class III prices will average $16.75 to $16.95 per hundredweight this year ― up from its August estimate of $16.50 to $16.70.
The USDA also raised its estimate for the all-milk price. It now projects the all-milk price will average $17.80 to $18 per hundredweight this year ― again, extending each side of the range 25 cents from the $17.55 to $17.75 projected last month.
“Product prices are forecast higher for 2012 as the milk production forecast is reduced and demand is somewhat stronger. With higher product prices, both the Class III and Class IV price forecasts are raised,” the USDA said in its monthly “World Agricultural Supply and Demand Estimates” report. To see the full report, click here.
Meanwhile, the USDA has revised its corn price estimate downward. In August, the agency said corn would average $7.50 to $8.90 per bushel for the crop year beginning Sept. 1. Now, it says the corn price will average $7.20 to $8.60.
While that’s small consolation, since the corn price is still high by historical standards, it does mark the first time in many months that a combination of higher projected milk prices and lower projected corn prices has occurred.
The soybean price is unchanged from the August estimate of $15 to $17 per bushel.