News

USDA increases 2009 milk production estimate

Monthly World Supply and Demand Report from USDA on Friday raised the 2009 U.S. milk production estimate a million pounds from last month to 187.6 billion pounds. The Ag Department Outlook Board says production per cow is increasing and reduction in the dairy herd is not occurring as quickly as expected.

The average cheese price for this year is down 2-3 cents at $1.21 to $1.24 per pound. The butter price estimate is 1-2 cents lower, $1.175 to $1.235 per pound, nonfat dry milk also 1-2 cents lower, 82.5-85.5 cents. Dry whey was increased 2 cents projected at 24 to 26 cents per pound.

The Class III milk price for 2009 is reduced 15-25 cents to $10.45 to $10.75 per hundredweight. Class IV estimate is reduced 15-25 cents as well, $9.95 to $10.35 and the all milk price is 10-20 cents lower now expected to run between $11.85 and $12.15 this year.