Little Change in Milk Forecasts

WASHINGTON - Nov 9/07 - SNS -- Milk production will not rise quite as much in 2008 as originally expected, according to the latest forecast from the USDA's World Agricultural Outlook Board.

Even so, dairy product prices are changed slightly in 2007 and 2008. Cheese price forecasts are raised in both years reflecting good demand and modest growth in supplies. Butter prices are reduced for 2007 and early 2008 as supplies have been building. NDM prices are reduced for 2007 on rising inventories.

Dry whey prices are little changed. As a result of stronger cheese price forecasts, the Class III price forecast is raised for 2007 and 2008. The Class IV price forecast is lowered for 2007, but unchanged in 2008. The all milk price is forecast at $18.95 to $19.05 per cwt for 2007 and $17.70 to $18.60 per cwt for 2008, unchanged from last month.

Forecast milk production for 2007 and 2008 is reduced. Cow herds and milk per cow are expanding gradually although USDA's Milk Production report released in October indicated that the pace is slightly below earlier expectations.

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