U.S. Milk Production Rising

WASHINGTON - Aug 11/06 - SNS -- Domestic milk production in the United States forecast for 2006 is reduced from last month, but the 2007 forecast is unchanged, according to the latest supply and demand outlook developed by the USDA's World Agricultural Outlook Board.

Recent unusually high temperatures in many milk producing regions have resulted in lower milk yield, and forecast milk per cow is reduced in the third quarter.

In the face of lower supplies and relatively robust demand for dairy products, forecast Class III and Class IV prices, and the all milk price are increased.

Higher forecast prices for nonfat dry milk (NDM) are expected to reduce incentives to offer NDM to the CCC. Thus, CCC net removals are reduced for both 2006 and 2007. The all milk price for 2006 is increased to $12.60 to $12.80, and 2007 is raised to $12.90 to $13.90 per cwt.

Subscribers can read the full text of the article by Clicking here