Milk Supply and Price Estimates
Dairy farmers are looking for a better 2019 than what they saw last year.
World Agricultural Outlook Board Chair Seth Meyer discusses USDA's latest look at dairy production and price estimates.
The 2019 milk production estimates for WASDE were lowered based on a projected reduction in cow numbers and stagnant production per cow. These estimates are based on data available through December 2018.
Class III prices for 2019 are unchanged from December while the Class IV price is raised based on higher butter and powder prices. USDA has raised the 2019 all milk price forecast to $16.90 to $17.60 per cwt.
Domestic retail and food service demand is relatively steady for dairy products.
While buyer interest has picked up due to lower prices, exports have yet to take off. Market participants hope the lower prices will generate buyer activity and draw down cheese stocks.