Cheese prices were lowered fractionally in July to $1.735-$1.765 per pound for the current year. Cheese prices are expected to decline to $1.630-$1.730 per pound in 2014. Butter prices are forecast at $1.515-$1.575 per pound in 2013 and at $1.450- $1.580 per pound in 2014; both downward revisions from June forecasts. Higher stocks of these products--especially this year and carrying into next year-- will likely pressure prices. Despite higher stocks, price prospects for NDM reflect continued strong export demand for dry milk products and reduced supplies from the European Union. The NDM price is projected at $1.615-$1.645 per pound, an increase from last month for the current year, and at $1.585-$1.655 per pound next year, unchanged from June. Whey prices are unchanged from the June forecast at 58.5-60.5 cents per pound this year and 56.5-59.5 cents per pound for 2014.
Class III milk prices were lowered slightly in July to $ 17.65-$17.95 per cwt reflecting the lower forecast cheese price. Next year, the Class III price is projected to slip to $16.60-$17.60 per cwt on weaker expected cheese prices. The Class IV price forecast was unchanged this month, but the price range was narrowed to $18.20-$18.60 per cwt. Next year’s Class IV price also lowered from the June forecast to $17.65-$18.75 per cwt based on lower forecast butter prices. The prospect of higher forecast milk production in 2014 compared with 2013 will also pressure prices downward. The 2013 all milk price was lowered this month to $19.50-$19.80 per cwt and to $18.70-$19.70 per cwt for 2014.