2013-2014 milk, price projections released

May 10, 2013 — USDA’s World Ag Supply & Demand Estimates (WASDE) report, released May 10, kept projected 2013 milk production estimates steady from a month earlier, and provided first estimates of 2014 production.

• 2013 production and marketings were projected at 201.8 billion lbs. and 200.8 billion lbs., respectively. If realized, 2013 production and marketings would be up about 0.7% from 2012.

• 2014 production and marketings were projected at 204.6 billion lbs. and 203.7 billion lbs., respectively. If realized, 2014 production and marketings would be up about 1.4% from 2013. Lower feed costs and relatively strong milk prices are expected to support production into 2014.

The 2013 all-milk price is forecast at $19.50-$20.00/cwt. The all-milk price is forecast at $18.85-$19.85/cwt. for 2014.

Feed prices: On the cost side of the dairy equation, the 2013/14 season-average farm price for corn is projected at $4.30-$5.10/bushel, down sharply from the record $6.70-$7.10/bushel average for 2012/13. The U.S. season-average soybean price for 2013/14 is forecast at $9.50-$11.50/bushel, compared with $14.30/bushel in 2012/13. Soybean meal is forecast at $280-$320/ton in 2013/14, compared to $425/ton in 2012/13.

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