News

USDA lowers milk production outlook

The USDA lowered its milk production outlook for 2016 and 2017, citing slower than expected growth in the U.S. dairy herd. Production this year is seen at 212.4 billion pounds, down 100 million, and next year is pegged at 216.8 billion pounds, 200 million lower. The lower production is expected to boost milk prices, with the average 2016 price for all milk seen at $16.05 to $16.15 per hundredweight and 2017 projected at $16.85 to $17.65.

The USDA raised cheese and butter price estimates for this year and next year, expecting continued solid domestic demand. 2017 prices for nonfat dry milk and dry whey were up on the month with the USDA anticipating strong export demand in the coming year. The dairy product demand expectations led the USDA to also raise Class III and Class IV price estimates.

USDA World Agricultural Supply and Demand Estimates PDF