USDA is projecting milk production in the U.S. to increase 1.5 billion pounds this year to 201.8 billion pounds and grow to 204.6 billion pounds in 2014. The latest World Agricultural Supply and Demand Estimates project lower feed costs and strong milk prices will support the increases in production. Exports should be strong on “robust international demand” while imports will decrease.

For 2013: cash cheese is projected to be between $1.745 and $1.795 per pound, up a penny from the April estimate. Cash butter also a penny higher at $1.57 to $1.65. Nonfat dry milk is a penny higher pegged at between $1.59 and $1.63 per pound this year while dry whey estimates are two-cents lower at 58 to 61. The Class III milk price estimate is a nickel lower from last month at $17.80 to $18.30 per hundredweight. Class IV is a dime higher, $18.20 to $18.80 and the all milk price estimate for 2013 is a nickel higher at $19.50 to $20.

For 2014: cash cheese is projected to be $1.675 to $1.775, butter at $1.485 to $1.615, nonfat dry milk is estimated at $1.585 to $1.655 and dry whey is 56.6 to 59.5 cents per pound. The Class III milk price for 2014 is estimated at $17 to $18 per hundredweight, Class IV is projected to be between $17.80 and $18.90 putting the all milk price at $18.85 to $19.85 for 2014.  (Source Dairyagenda Today)