Dairy Outlook: Economist predicts milk prices will turn around by the end of June. U.S. cheese demand is at record levels.
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Economist Dan Basse believes milk prices are near a seasonal low for 2023 and by the end of June, prices will start heading up again. Basse, president of AgResource Co. in Chicago, said during a May 11 Professional Dairy Producers Dairy Signal webinar that the Class III milk price was $16.40 per cwt. He noted the U.S. dairy export volume has been close to last year, but exports of butter, whey and skim are all down. “We are actually importing more butter [primarily Irish butter] than we are exporting, but global cheese demand and exports of cheese are high,” Basse said. “However, from a dollar value perspective, exports have been down because prices are down. We need to turn this around as we get into summer so we can change the landscape and get milk prices above $21 per cwt by late summer. Ice cream sales should come into play.” Domestically, he noted, butter demand this year has been “very, very good in the U.S.” Demand for cheese in the U.S. has been at record levels. Basse ...
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