US milk production to rise by 2.3% in 2017
Milk production in the US is predicted to increase by 2.3% in 2017 to 98.863m tonnes, according to the latest estimates by USDA published this week.
The figure is up from the previous estimate of 98.818m tonnes in February with the extra production expected to come from additional cows as production per cow has been lower than in previous USDA reports.
Dairy exports of fat are unchanged but skim milk solids exports are lowered due to expected strong competition in international skim milk powder markets.
Forecast for dairy imports are unchanged and the end of year stocks of skim milk products are forecast to be higher because of higher production and weaker exports.
The all milk price for 2017 is forecast to be between $17.80 and $18.40 per 100 pounds (37.02-38.27 c/l)
Cheese price forecast for 2017 has been reduced as high stocks of cheese are expected to put pressure on prices. Non-fat dry milk price is forecast to reduce because of slower export growth due to increased competition from global competitors.
Whey price forecast has been raised reflecting recent market strength and milk for cheese manufacture is also up due to higher whey prices outweighing reduced cheese prices.
Milk for butter and skim milk powder price forecast has been reduced reflecting the weaker trade in powder offsetting higher butter prices.