WASDE Raises Production, Price Estimates
USDA’s January World Agriculture Supply and Demand Estimate (WASDE) raised 2016 milk production based on slightly higher milk cow numbers. The report also raised the 2017 milk production forecast from December as improved returns support increases in both cow numbers and milk per cow.
Dairy product prices and Class prices for 2016 are adjusted to incorporate December price data. For 2017, butter, cheese, nonfat dry milk, and whey prices are raised from last month on demand strength. Class prices for 2017 are raised, reflecting higher product price forecasts. The all milk price range is raised to $17.60 to $18.40 per cwt. That’s up from the $16.85 to $17.65 range reported last month.
Find the full report here.