WASDE Report Lowers Production and Price Forecast

The milk production forecasts for 2018 and 2019 are reduced from the previous month on lower cow numbers; however, stronger growth in milk per cow is expected to partially offset smaller
dairy cow numbers.
The 2018 fat basis import forecast is unchanged from the previous month, but is reduced for 2019 on lower imports of milk protein concentrates. Fat basis export forecasts for 2018 and 2019 are unchanged from last month.

The skim-solids basis import forecasts for 2018 and 2019 are reduced primarily on lower expected imports of milk protein concentrates and casein.
The 2018 and 2019 skim-solids basis export forecasts are unchanged.
For 2018, the cheese and butter price forecasts are lowered from last month on recent price weakness, but the nonfat dry milk (NDM) price forecast is unchanged.
The whey price forecast is raised from the previous month.
For 2019, cheese and butter price forecasts are lowered from the previous month, but NDM and whey price forecasts are raised.
The 2018 and 2019 Class III price forecasts are lowered from the last month on lower cheese prices.
The 2018 and 2019 Class IV prices are reduced from last month on lower fore cast butter prices.
The 2018 all milk price forecast is lowered to $16.20 to $16.30 per cwt and the 2019 all milk price is forecast lower at $16.70 to $17.60 per cwt.

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