Milk prices in the USDA's July Supply and Demand Report remain around the record prices that were set last year. The record price for milk set in 2007 was $19.13 per hundredweight.
"The current estimate for 2008 is $19.10 per hundredweight and our current estimate for 2009 is now $19.10," says World Agricultural Outlook Board Chairman Gerry Bange. "We've increased our 2009 forecast by 50 cents up to the $19.10."
Both production and commercial use for 2009 should be up from this year, but Bange says that is not the driver for the trend of high all milk prices.
"The strength we're seeing in 2009 where we've increased our price really reflects anticipation of a very strong cheese price," Bange says. "We've gone up on our Class III price 50 cents to $18.05 and we're still at $17.10 on our Class IV price."