Everything is looking up in March WASDE report

This column was written for the marketing week ending March 10.

The U.S. Department of Agriculture raised its 2023 U.S. milk production estimate in the March 6 World Agricultural Supply and Demand Estimates report, citing a larger cow inventory. Output per cow was unchanged from last month.

2023 production and marketings were estimated at 228.5 and 227.5 billion pounds respectively, up 200 million pounds on both from a month ago. If realized, 2023 production would be up 2 billion pounds or 0.9 percent from 2022.

Cheese price forecasts were lowered as supplies are expected to be relatively large and domestic demand projected to be relatively soft. The 2023 average was projected at $1.81 per pound, down a nickel from February’s

Mielke Market Weekly

By Lee Mielke

estimate, and compares to $2.1122 in 2022, $1.6755 in 2021, and $1.9236 in 2020.

Butter prices were raised on recent data and projected to average $2.335 per pound, up 50 cents from a month ago, and compares to $2.8665 in 2022, $1.7325 in 2021, and $1.5808 in 2020.

Nonfat dry milk is expected to see a weak first quarter offset by a stronger fourth quarter and to average $1.23 in