News

USDA increases milk production outlook

The USDA has raised its 2017 milk production estimate.

The new projection is 217.5 billion pounds, up 100 million on the month and 5.1 billion pounds more than in 2016, with herd growth cancelling out a lower average production guess. The average annual price for all milk is seen at $17.80 to $18.40 per hundredweight, up $.10 on the low end and unchanged on the high end. Class III is estimated at $16.60 to $17.20, compared to $16.45 to $17.20 in February, and Class IV is expected to range from $14.85 to $15.55, compared to $15.10 to $15.90 last month, with all adjustments linked to product demand. On the fat basis, marketings are seen at 216.5 billion pounds, 100 million more than in February, and commercial exports are expected to be 8.3 billion pounds, unchanged. On the skim basis, marketings are pegged at 216.5 billion pounds, 100 million pounds more than a month ago, with exports at 39.8 billion, down 300 million.

The USDA lowered the price estimate for cheese to $1.645 to $1.705 per pound because of the large supply and reduced the nonfat dry milk guess to $.925 to $.975 because of high export competition, but raised the outlook for butter to $2.12 to $2.21, citing good domestic demand. Dry whey was also increased, now projected at $.495 to $.525, with the USDA expecting a continued strong price trend.