WASDE Lowers Production Estimate
The USDA World Agricultural Supply and Demand Estimate report released today lowered the 2018 production estimate based on slower anticipated growth in the dairy herd coupled with slow growth in milk per cow. In addition, export were increased based on solid global demand for U.S. butter and other dairy products.
The USDA report also adjusted dairy product prices based on December data. For 2018, all dairy product prices are reduced due to slowing domestic demand and greater global competition. Likewise, the 2018 Class III and Class IV price forecasts are reduced as well. The WASDE report reduced the all milk price to $15.80 to $16.60 per cwt for 2018.
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