USDA Lowers Milk Production Forecast
USDA, in their World Agricultural Supply and Demand Estimate (WASDE) this month, lowered its milk production forecast for 2018 and 2019 based on lower cow numbers. The lower production, however, did not keep USDA from lowering the all milk price forecast as well.
Lower cheese and butter price forecasts going into 2019 caused USDA to lower its Class III and Class IV price forecasts. The 2018 all milk price forecast now stands at $16.20 to $16.30 per cwt, while the 2019 all milk forecast is pegged at $16.70 to $17.60 per cwt.
Skim-solids and fat based export forecasts are unchanged, with import figures in both categories reduced based on lower imports of milk protein concentrates and casein.
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