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Little Change in Milk Supply-Demand Outlook
WASHINGTON - Jul 12/07 - SNS -- Few changes were made to the supply and demand outlook for U.S. milk in the latest forecasts from the USDA's World Agricultural Outlook Board.
Cow numbers are forecast higher than last month as producers are expected to respond to favorable returns, but output per cow is reduced slightly as growth continues to lag expectations. The July 20 USDA Cattle report will provide further indications of producer expansion plans.
Dairy prices remain strong as both domestic and international demand remains firm. Cheese and nonfat dry milk (NDM) price forecasts are raised from last month, but butter prices are forecast lower. Class III and Class IV price forecasts are raised due to higher cheese and NDM prices.
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