USDA Dairy Outlook Shows Differing Directions

The USDA released their September dairy outlook and how a producer feels depends on what they actually produce.

World Ag Outlook Board Chair Seth Meyer said for cheese and butter producers, it’s not good news.

“Downward pressure in ’16 and in ’17 on cheese and butter prices because of large supplies. It’s effecting our price expectations for both years.”

Non-fat dry milk and dry whey are both on the rise with an improving trade forecast.

Meyer also noted that class prices are interacting with major implications.

“Those two are playing off each other when you think about class milk prices. At the end of the day, when you come down to the all-milk price, a decline of about 15 cents for 2016 but unchanged at $16.65 in that 2017 all-milk price.”