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Bigger U.S. Milk Supply Seen
WASHINGTON - Apr 10/06 - SNS -- Forecast milk supply in 2006 is raised from last month as USDA's Milk Production report indicated continued strong growth in milk supplies during February, according to the latest report from the USDA's World Agricultural Outlook Board.
With higher production, stock forecasts are increased slightly. Product prices are forecast lower than last month, but forecast CCC net removals are unchanged.
The Class III price forecast is reduced due to lower expected cheese prices. Likewise, lower forecast butter prices result in a lower Class IV price. The all milk price forecast for 2006 is lowered to $12.55 to $13.05 per cwt.
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