USDA's June outlook for dairy production and prices starts with, " [a] small downward adjustments, in terms of milk production, for both the current calendar year and for next year; lowered by 200 million pounds in each year," which World Agricultural Outlook Board Chair Mark Jekaowski said reflects drought stress and high feed costs.

Equally expected lower production per cow, with some supplies tightening in terms of milk supply.  Yet demand for dairy products, both domestically and globally, is supported continued price strength.

"This month we raised most of our very product price forecasts.  All of our class prices, class III class IV, all forecast higher this month and that translate also into increased forecast for the all milk price.  Currently for 2022 or forecast date and all milk price of $26.20 cwt that would be record high for 2023, or forecasting $23.80 cwt."

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