Modest Changes in U.S. Milk Situation

WASHINGTON - Jun 9/06 - SNS -- The milk production in the United States forecast for 2006 is lowered slightly from last month from 182 to 191.9 billion pounds, but the 2007 forecast is unchanged at 183.1 billion pounds, according to the latest supply and demand outlook report from the USDA's World Agricultural Outlook Board.

Milk cow numbers in 2006 are raised fractionally, but the increase is offset by slightly slower-than-expected growth in milk per cow. Higher feed costs are expected to result in slower growth in milk per cow.

Cheese demand remains relatively strong and in the face of slightly tighter milk output, the cheese price forecast is raised from last month. However, forecast butter prices are unchanged and nonfat dry milk (NDM) and whey prices for 2006 and 2007 are lowered fractionally from last month reflecting weaker demand.

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