News

USDA expects milk production to increase

USDA is forecasting milk production for this year and next higher as dairy farmers increase their herd size and milk per cow is expected to increase.

In its October supply and demand report, USDA forecasts butter and whey prices higher for 2018 and 2019 because of better demand but cheese lower because of large supplies. Class III prices were lowered for this year.  Nonfat dry milk prices are expected to stay the same.

The 2018 all milk price is forecast on a range of $16.35 to $16.45, mostly unchanged from the previous report.

Exports on a fat basis were raised for 2018 because of stronger cheese exports, but 2019 numbers were left unchanged. Skim-solids basis exports for 2018 are raised, on stronger nonfat dry milk and whey product shipments.