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Milk Product Price Outlook Firming in U.S.
WASHINGTON - Jun 11/07 - SNS -- Strong demand for dairy products and limited ability to adjust production in the short term has resulted in significantly higher U.S. domestic price forecasts this month, according to the latest supply and demand outlooks estimates from the USDA's World Agricultural Outlook Board.
Milk production forecasts for both 2007 and 2008 are raised from last month but relatively high feed costs are expected to limit growth into 2008.
Cow numbers are forecast higher than last month, with the cow herd in 2007 averaging about the same as 2006, and expanding in 2008. Output per cow is forecast to continue to increase modestly in both 2007 and 2008.
However, in the face of continued strong demand for dairy products and expected tightness in international supplies, most product prices for 2007 and 2008 are forecast higher than last month.
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