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Dairy Prices Seen Rising
WASHINGTON - Jan 12/04 - SNS -- Dairy production forecasts for 2003-04 are lowered 400 million pounds from last month as forecasts of both cow numbers and milk per cow are reduced in the latest USDA World Agricultural Supply and Demand Estimates (WASDE) report.
Forecast commercial use is lowered slightly from last month but continues to reflect improved demand from 2002-2003. As a result, forecast milkfat-basis CCC net removals are lowered from last month.
Milk price forecasts are raised with the Class III price range expected at $11.20 to $11.70 per cwt and the Class IV price at $10.00 to $10.70 per cwt. The higher Class IV price reflects expectations of continued strength in butter prices. The all milk price range is narrowed to $12.40 to $12.90 per cwt.
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