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USDA lowers dairy forecasts again

USDA has again lowered its milk production forecast for this year and next because of lower cow numbers and slower growth in milk per cow.  The agency says relatively week returns should make for a smaller herd size next year.

In its December supply and demand report, USDA forecast cheese prices lower for 2018 because of market weakness and large stocks.  Butter, nonfat dry milk prices and whey were unchanged.  Cheese and butter prices for next year were also lowered again from the previous month while nonfat dry milk was unchanged and whey prices were raised because of low stocks.  Class III prices were again lowered for this year and next on lower cheese prices.

The 2018 all milk price is forecast on a range of $16.15 to $16.25, down about five cents from the previous report.

Exports on a fat basis were raised for 2018 and 2019.  Skim-solids basis exports were raised for 2018 but unchanged for next year.

 

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