Outlook Report Says Milk Production Will Outpace Demand
US - The monthly cold storage report from USDA shows American cheese stocks as of the end of September were just under 543 million pounds.
23 October 2007
1 minute read
That is 2.7 million pounds below the end of August, the smallest September decline in 20 years. Daily Market News says cheese prices are running around 40% higher than they were a year ago and as a result, holiday orders just aren’t coming in as strong as they usually do.
The Livestock, Dairy and Poultry Outlook from USDA released on Monday says milk production is expected to increase well into 2008 and that will pressure prices. The report says although domestic demand is strong, it is unlikely to keep up with increased production. The report also projects that export business will fall off due to the higher prices. Some may take issue with that given the weak dollar. Still, USDA predicts NDM will average $1.725 to $1.745 per pound this year then slip to $1.645 to $1.715 in 2008. The whey price will average 59 to 60 cents per pound this year and 43 to 46 cents next year.
The Report puts the all milk price at $18.95 to $19.05 for 2007 and $17.70 to $18.60 in 2008. Class III is pegged at $17.65 to $17.75 this year, slipping to $15.60 to $16.50 next year. Class IV is projected to average $18.50 to $18.70 this year and $17.35 to $17.75 in 2008.
