Dairy Market Hard To Predict

The future of dairy markets are fairly hard to predict these days, just ask USDA Outlook Board Chair Mark Jekanowski. He noted food service demand remains one of the biggest questions leading to the uncertainty.

How many schools are going to be open?

How many will be virtual?

Will full lunch services be offered or not?

Will restaurants be open, closed , or something between?

So amongst this uncertainty milk production continues to increase. He noted this year production could jump up 1.5 % from 2019 to 2020, and another 1.5% increase for next year. Jekanowski added milk price prospects looking better than they did in March and April.

"However, the price situation isn't quite as good as we had anticipated."

USDA has trimmed $.30 CWT off of its All-Milk 2020 prices expected to average $17.95 CWT, roughly 3.5% less than last year.

"And that's expected to come down in 2021 down to $17.05 CWT," Jekanowski noted.

But again, he stressed, the dairy market is tough to predict these days. 

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