WASDE Lowers Production, Raises Price Forecasts
With U.S. cow inventory increasing less rapidly than expected, and despite higher output per cow, USDA lowered milk production forecasts in its most recent World Agricultural Supply and Demand Estimates (WASDE).
Class III milk prices are raised for the remainder of 2016 and 2017 based on higher cheese and whey prices. Milk prices are forecast higher at $16 to $16.10 per cwt for 2016 and $16.30 to $17.20 per cwt for 2017.
Cheese and whey price forecasts for the rest of 2016 were increased based on recently strong prices. For 2017, the report states that large supplies of butter are expected to continue to pressure prices, but prices of cheese, whey and nonfat dry milk are expected to strengthen.
Find the full report here