USDA Lowers Milk Production Forecast, Price Forecast Variable
In its August World Agricultural Supply and Demand Estimates (WASDE) report, the USDA lowered milk production forecasts for 2017 and 2018, and milk price forecasts were all over the board.
According to the report, the reduced production forecast is the result of slow growth in milk per cow which “more than offset increases in dairy cow numbers.”
Milk price forecasts in the report fluctuated, some raised and some lowered as the result of product prices.
For the remainder of 2017, Class III milk price forecast is unchanged, however the 2018 price is lowered as the agency expects lower whey prices to offset any improvement in cheese prices.
Class IV price forecasts for the rest of 2017 and 2018 were raised. USDA expects strong butter prices to offset lower NDM prices.
In addition, the all milk price was raised for the rest of 2017 at a range of $17.80 - $18.00 per cwt. The 2018 all milk price is unchanged at a range of $18.00 - $19.00 per cwt.