Milk Forecast Trimmed, but Production Expected To Remain High

U.S. Milk Producers will end their 2018 year having turned out about 1% more milk that in 2017, and getting about an 8% lower price for it.  For 2019, analysts have trimmed their previous milk production forecasts, but still output will top this year by 3-billion pounds, or about 1.4%.   But USDA outlook board chairman Seth Meyer said that production number of just under 221-billion pounds is still 500 million less than was forecast just a month ago.

"The third quarter September milk production report came in with about 20,000 fewer milk cows, so we kinda say okay, there's a little less production. We carry that little bit of less production into 2019, but still growing."

Yet, USDA's calling for milk prices this year to top this year by an average 90-cents a hundred weight, or about 5.5%.  However, USDA forecasting dairy producers will see corn prices rising by 7%.

"And that's gonna give you tighter margins for those producers than we were anticipating last month."

And that will put more pressure on dairy producers.

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