USDA publishes the "World Agricultural Supply and Demand Estimates" (WASDE) regularly. The one released yesterday, December 10, 2009 states for dairy:
The milk production forecasts are raised for 2009 and 2010. Dairy cow liquidation has been slower than expected, and improving milk prices in 2010 are expected to diminish the rate of decline in cow numbers. Dairy exports for 2009 are raised slightly, reflecting third-quarter strength in cheese and nonfat dry milk demand. Import forecasts are lowered for 2009. Fatbasis ending stocks are forecast higher for 2010. Although milk production is forecast higher than last month, improving demand is expected to support prices for most products. Prices for cheese, nonfat dry milk, and whey are forecast higher, but butter prices are forecast slightly lower. The Class III price forecast for 2009 is raised from last month and both Class III and Class IV prices are forecast higher for 2010. The all milk price is forecast at $12.70 to $12.80 per cwt for 2009 and $16.35 to $17.15 for 2010.
A year ago WASDE said:
The 2008 all milk price forecast is unchanged this month, averaging $18.30 to $18.40 per cwt, but the 2009 forecast is lowered to $14.95 to $15.75 per cwt.