August 13, 2004

US Milk Production Forecasts Up
 

Based on the July Milk Production report that indicated a slightly larger cow herd, the US milk production forecasts for 2003/2004 and 2004/05 are raised from last month. 

The all milk price forecast for 2003/04 is unchanged. The Class III price forecast is raised to $14.90 - $15.00 per cwt, but the Class IV price is lowered to $12.25 - $12.45. 

For 2004/05, the all milk forecast is lowered. Both the Class III and Class IV price forecasts are reduced compared with last month. This is because product prices are expected to be weaker in the face of larger milk supplies.

Source:  ERS/USDA-WASDE