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U.S. Milk Output Seen Rising
WASHINGTON - Jun 10/05 - SNS -- U.S. milk production in 2005 and 2006 is forecast higher than last month as recent good returns are expected to result in increased cow numbers, and stocks declining, according to the USDA's World Agricultural Outlook Board latest report.
The recent Milk Production report indicated that cow numbers are above 2004 and producers are expected to expand herds through 2006.
Larger supplies of milk are expected to pressure butter and cheese prices, but strong exports continue to support nonfat dry milk prices. The nonfat dry milk price forecasts for both 2005 and 2006 are raised, which helps support increased Class IV prices even in the face of lower butter price forecasts.
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