USDA Lowers Milk Production, Price Estimates
In their February World Agricultural Supply and Demand Estimates (WASDE) report, USDA reduced the milk production and price forecasts for 2018
“The milk production forecast for 2018 is lowered from last month on expectations of slower growth in milk per cow,” the report says.
The agency left fat basis export and import forecasts unchanged from the previous month but increased the forecast for skim-solids basis imports and exports. USDA cites strong global demand for skim milk powder, lactose and whey products as reason for increased skim-solids exports.
Relatively weak demand reduced product price forecasts for cheese and butter. No changes are made to the annual prices for NDM and whey.
“The Class III price is lowered on the cheese price projection while the Class IV price is down on a lower butter price forecast,” the report said. “The all milk price is forecast is reduced to $15.70 to $16.40 per cwt.”