USDA Anticipates Record High Dairy Prices
With dairy, one story in USDA's March WASDE report is record high prices.
"The all milk price was raised $1.50 per hundred weight to $25.05 per hundred weight, and that would be a new record compared to the previous record, which was achieved in 2014," noted World Agriculture Outlook Board Chair Mark Jekanowski calls the increase significant. "That's a pretty simple story, but an interesting one, too. [We] reduced our production forecasts again this month and that reflects, again, what we're seeing in the data: Both lower cow numbers and reduction in the growth of milk per cow."
Jekanowski added that milk production is down from last month and also year-over-year.
"We've raised our dairy prices, kinda, across the board. Cheese, butter, non-fat dry, dry whey, and [it's] just reflecting the prices were observing and that's fully consistent with the lower production forecast and strong demand."
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