News

Another day, another increase in cheese and butter

Cash cheese barrels and blocks each adding 2 cents per pound and butter jumped 6 cents on the Chicago Mercantile Exchange on Thursday.  Despite declining global prices, the monthly Livestock, Dairy and Poultry Outlook from USDA says U.S. dairy market continues to be pushed by strong demand, tight supplies and no real indication that milk production is increasing dramatically.  In fact, the latest World Agricultural Supply and Demand Estimate reduced the projected milk production for this year slightly.  Of particular note, through May, the milk increases have been in the western states while the Midwest was seeing lower production compared to a year ago due to poor forage.  That is expected to change as this year’s first crop was very good.

The high milk prices and low feed prices are expected to spur an increase in cow numbers.  The U.S. herd is forecast to total more than 9.2 million head this year and more than 9.3 million next year.  Production per cow is expected to be 22,230 this year increasing to 22,730 in 2015.