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U.S. Milk Supply Rising
WASHINGTON - May 11/07 - SNS -- U.S. domestic milk output should rise in 2008 because of strong prices and forecast improvements in hay supply, according to the latest forecasts from the USDA's World Agricultural Outlook Board.
Milk cow numbers are likely to be only fractionally below 2007 and milk per cow growth should increase more rapidly than in 2007.
Commercial use of fat and skim solids is expected to remain strong, and commercial stocks will likely tighten. Butter prices are forecast to increase in 2008 but cheese prices are forecast to decline slightly.
Continued strength in export demand as well as domestic use of nonfat dry milk (NDM) and whey will help support prices with the annual average price of NDM above 2007. Whey prices are expected to decline modestly from 2007 with increased supplies but will remain above historical prices.
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