USDA Lowers All Milk Price Forecast
On Tuesday in its monthly World Agriculture Supply and Demand Estimate report (WASDE), USDA lowered the all milk price forecast to a range of $17.40 - $17.90 per CWT. In addition, the agency also lowered Class III and Class IV prices citing the booming supply of stored cheese, butter, dry milk and whey both domestically and internationally.
In addition to lowering the price forecasts, USDA also lowered their milk production forecast for 2017 because they expect reductions in milk per cow to offset any increases in cow numbers.
USDA’s import expectations for dairy products were lowered, as were fat basis exports. However, exports of products containing skim-solids are expected to increase as weaker whole milk powder is offset by other skim-based products.
For full coverage of the April WASDE report visit AgWeb.com.