Wednesday, October 17, 2018
 Dairy Market Outlook  

Cheese production is nearing capacity in many facilities across the United States. Milk supplies are more than ample. USDA’s Dairy Market News reports that surplus milk from Idaho is selling in the region below class prices. Spot loads in the Midwest are being discounted between $2 and $5 under the Class III price. Nevertheless, cheese manufacturing is the preferred outlet for surplus milk given current nonfat dry milk (NDM) prices.


USDA raised its outlook for 2014 cheese and NDM prices to reflect current price movements but lowered its 2015 price forecasts because “domestic supplies are expected to be relatively large,” according to the latest World Agricultural Supply and Demand Estimates (WASDE).


USDA tempered its 2015 milk production estimate, citing more moderate expansion in cow numbers and growth in milk production per cow compared to earlier forecasts. Export forecasts for 2014 and 2015 were lowered as U.S. dairy products, particularly NDM, have become less competitive in global markets. In total, USDA’s outlook for the 2015 All-Milk price fell a very modest 10¢ per hundredweight on each side of the range from last month’s estimate to $18.85 to $19.75. The midpoint of the 2015 All-Milk price estimate is $19.30. 

Posted on Thursday, November 20, 2014 (Archive on Thursday, November 27, 2014)
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