Improved Milk Output Pressures Price

WASHINGTON - Sep 12/08 - SNS -- The milk production forecast for the United States in 2008 is fractionally higher than last month, and forecast 2009 production is raised, according to the latest forecast from the USDA's World Agricultural Outlook Board.

For both years, cow numbers are expected to decline less rapidly than previously expected, and milk per cow in 2009 is expected to increase at a slightly higher rate.

Dairy trade forecasts are adjusted to reflect complete second quarter data but forecasts are unchanged from last month. Stocks are adjusted to reflect tighter expected stocks of fat-basis products but potentially larger stocks of nonfat dry milk (NDM).

Prices for butter, cheese, NDM, and whey are forecast lower as milk production is forecast higher. As a result of lower product prices, Class III and IV prices forecasts are reduced. The all milk price is forecast lower this month, averaging $18.65 to $18.85 in 2008 and $17.85 to $18.85 in 2009.

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