USDA Expects Milk Production To Increase

USDA's March meat and dairy outlook shares similar trend-lines with expected production increases, and conversely, lower prices.

"We're increasing our production estimate without any big changes in demand is weighing on prices," said World Agricultural Outlook Board Acting Chair Mark Jakanowski. He added higher cow numbers is one reason behind higher production forecast.

"Also, we increased our import estimate for fat-based products and also on a skim-solid basis." Leading to stronger supplies, adjusting prices down from the previous month.

"Cheese prices, utter non-fat dry, all pulled down a bit based on larger supplies and relatively weak demand. And those translate directly into lower milk class prices. The Class III price, we pulled back about $.30 per hundred-weight, Class IV we pulled back almost a dollar per hundred-weight, and the all-milk price, we pulled back to $18.25...that's a reduction of $.60 per hundred-weight."