USDA: Milk Numbers Expected To Level Off

World Ag Outlook Board Chair Seth Meyer expects a decline in the growth of milk supplies into 2019.  He adds that lower than expected milk prices are related to large stocks in the cheese market.

"So, we did reduce the all-milk price a nickel in 2018 to $16.20 a hundred-weight, and reduced it 35-cents in 2019 to $16.80 a hundred-weight. So, while we have growth year-over-year in the all-milk price, its smaller growth than we had anticipated before."]

Meyer pointed to narrowing dairy margins for two months in a row.

"November, we narrowed margins because we had an increase in feed prices, a reduction in milk prices. This month, essentially, we have a narrowing of margins again because output prices are falling."

Meantime, imports of products like high-fat content butter are strong.

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