Milk Price Forecast Lowered By ERS

The November 15 Livestock, Dairy and Poultry Outlook from the USDA Economic Research Service showed September ending stocks indicate that third-quarter cold and dried-egg storage for U.S. animal protein commodities changed compared to 2017 as follows: beef (up almost 3 percent), pork (down nearly 5 percent), lamb (up almost 29 percent), broilers (up more than 17 percent), turkey (down less than 1 percent), eggs (down nearly 15 percent), cheese (up more than 4 percent), and butter (up almost 11 percent).

USDA National Agricultural Statistics Service made significant revisions to estimates of the U.S. milking herd size for July and August and reported that milk cows declined from August to September. As a result, milk production forecasts have been lowered for 2018 and 2019 due to lower expected cow numbers. However, stronger growth in milk per cow is expected to partially offset the smaller expected dairy herd. With lower expected cheese and butter prices, the 2018 fourth-quarter all-milk price forecast has been lowered to $17.05-$17.35 per cwt, 60 cents lower than last month’s forecast at the midpoint of the range. The all-milk price forecast for 2018 has been lowered to $16.20-$16.30 per cwt, 15 cents lower than last month’s forecast at the midpoint. The all-milk price forecast for 2019 was lowered 15 cents at the midpoint to $16.70-$17.60 per cwt.
The complete report can be found here


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