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USDA Tweaks Milk Supply-Demand Outlook
WASHINGTON - Mar 9/07 - SNS -- Forecast milk supply and demand for the U.S. domestic markets underwent some minor tweaking in the latest USDA supply and demand updates from the World Agricultural Outlook Board.
The USDA said milk supply and use estimates for 2006 are adjusted to reflect revisions to production and stock data as well as December trade data.
Production in first quarter 2007 is lowered because of reduced milk per cow as growth in January output per cow was lower than expected. Production forecasts for the remaining quarters are unchanged.
Despite improved milk prices, relatively weak milk-feed ratios are expected to result in a gradual decline in herd numbers through much of the year. Beginning year stocks are higher than last month but demand for dairy products is expected to absorb the additional quantities.
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