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Faster Than Expected Growth in U.S. Milk
WASHINGTON - Sep 12/05 - SNS -- Milk production in the United States is expected to rise at a faster rate through the balance of this year and in the coming year than initially expected, according to the latest report from the USDA's World Agricultural Outlook Board.
Slightly faster growth is forecast for the cow herd and output per cow. Fat-basis commercial demand is expected to be stronger than forecast last month both for 2005 and 2006, providing support for increased forecasts of butter and cheese prices in 2005 and butter prices in 2006.
Commercial use of skim solids is also increased as demand for cheese and other products coupled with continued strength in exports is expected. The nonfat dry milk price forecast is raised for both 2005 and 2006. The whey price forecast is also raised on strength in exports.
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