Yesterdays WASDE report has milk production forecasts for both 2018 and 2019 lowered from last month on slower than anticipated growth in milk per cow and lower cow numbers. Although tempered by lower expected feed costs, lower milk prices will likely weaken producer margins, resulting in lower cow numbers and slower growth in milk per cow. USDA’s Cattle report, to be released on July 20th, will provide a midyear estimate of dairy cow and dairy replacement heifer inventories.
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