The USDA has dropped its 2018 milk production forecast. The latest supply and demand report says there were fewer cows and less milk per cow for 2018. The 2019 herd projections remain unchanged.
The USDA says the 2018 fat-basis exports will likely go up based on May and strong second quarter export figures. The agency says strength in sales of a number of fat-containing products will largely mitigate the impacts of Mexico’s U.S. cheese tariffs.
The report also predicts recent robust demand for nonfat dry milk and lactose will increase exports for those products.
The USDA expects little change in cheese prices this year, but rising cheese prices in 2019. This year’s all-milk price is forecast between $16.70 and $17.00 a hundredweight, but analysts at USDA still say it could approach $17.70 next year.
Source: Brownfield Ag News