USDA Lowers Its All-Milk Price Forecast

When taking a look at the August USDA Milk Production and Price forecast, you’ll notice a bit of a mixed message.  First when it comes to production;

“2026 was virtually unchanged this month," said World Agricultural Outlook Board Chair Mark Jekanowski.  "We did see an increase in the size of the cow inventory, but that was largely offset by a slight reduction in milk per cow, which we carried into 2027, which assuming no change in the cow inventory, led to a small reduction, 100 million pound production in our milk production forecast for next year.”

Photo: USDA

So, how do things look when it comes to trade?

"We raised our fat basis export forecast," Jekanowski continued.  "That reflects strength in both U.S. butter exports and cheese exports. Pretty sharp reduction in our skim salad basis export forecast this month and that's mainly lower exports of non-fat dry milk and lactose.”

When it was all said and done, Jakanowski said the all-milk price forecast for this month was lowered for both this year and next.

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