News

Some slight changes in USDA’s dairy outlook

The monthly World Agricultural Supply and Demand estimates from USDA on Wednesday nudged U.S. milk production a little higher for this year and a little lower for 2012. The Outlook Board puts production at 195.9 billion pounds in 2011 and 198.4 billion next year. Cheese prices were trimmed 1 to 2 cents from the September estimates now put at between $1.81 and $1.82 for 2011, $1.665 and $1.755 for 2012. Butter also 1 to 2 cents lower, $1.94 to $1.97 this year, $1.60 to $1.72 next year. Nonfat dry milk prices for this year were unchanged from last month while the 2012 price was 2 to 3 cents lower. Dry whey prices unchanged to a penny higher for 2011 while the 2012 price estimate is 4 cents higher than the September estimate.

The Class III milk price estimates for 2011 and 2012 were reduced 10 to 20 cents now pegged at between $18.15 and $18.25 for this year, $16.30 to $17.20 next year. Class IV for 2011 unchanged to a dime lower, $19.05 to $19.25 while the 2012 price is 20 to 30 cents lower than last month at $16.30 o $17.30. The all milk price estimate for 2011 is 15 to 20 cents lower at $20 to $20.10 while the 2012 price was reduced 5 to 15 cents putting it between $17.75 and $18.65 per hundredweight.

Read the full WASDE report here: