09/21/06 Revised milk production numbers

USDA has revised its milk production numbers. Turns out there's more than expected. Gerald Bange is chairman of the World Outlook Board. BANGE "We thought the very hot weather we experienced this past summer would be more injurious to milk production than it turned out to be." That meant that milk production was up slightly. BANGE "The latest numbers suggest that we may have cut our milk production estimate just a little too much. So we're looking at 2006 now at 182 billion pounds again that's 600 million pounds above our prior forecast. 2007 were looking at production of about 183.2 billion pounds that's 100 million pounds over our previous forecast." Bange expects the all-milk price to be around $13.40 in 2007, up about five percent from the $12.75 that he expects to report in 2006. BANGE "The 183.2 would actually only be a seven tenths percent increase over the 2006 year which of course is giving us a stronger price outlook for 2007 year." Non-dry milk prices remained the same as last month, butter supplies are large, therefore butter prices are weaker but the overall strong demand for cheese is helping to support prices according to Bange. Voice of Idaho Agriculture Bill Scott