Market Outlook: Summary


Source: USDA

The milk production estimate for 2024 is lowered from last month; lower expected yield per cow more than offsets higher expected milk cow numbers. Wholesale price forecasts for 2024 have been increased for Cheddar cheese, dry whey, butter, and nonfat dry milk to $1.690, $0.480, $2.770, and $1.235 per pound, respectively, based on recent strength in prices, tight supplies, and stronger expected domestic demand. With higher dairy product prices expected across the board, Class III and IV milk price forecasts for 2024 have been raised to $17.10 per hundredweight (cwt) and $20.20 per cwt, respectively. The 2024 all-milk price estimate is adjusted higher to $20.95 per cwt.

Bar chart of replacement heifers as a percent of milk cows over time where 2023 and 2024 are lower than previous years