Dairy Prices Looking Good Into New Year

As we prepare to wrap up 2019, what can we expect for dairy prices into the New Year?

“Imports of butter to weaken a bit for the remainder of this year in to next year,” said Acting World Agricultural Outlook Board Chair Mark Jekanowski.  “On the other hand we see some strength in exports of butter. And then also in terms of exports we see a lot of strength in global demand for nonfat dry milk, and that supports especially in to 2020 higher class for milk prices.”

With USDA forecasting a $1 increase in class IV milk prices for next year.  Class III prices for 2020 are already also set to rise, but at fifteen cents per hundred weight.  With lower cheese prices offsetting increased prices for butter.

The end result is an all milk price for next year forecast at $19.40 cwt.  That's up 55 cents from the previous month and up 80 cents from 2019.

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