By: Bob Meyer
The monthly World Agricultural Supply and Demand Estimates from NASS on Monday raised the 2014 milk production estimate from a month ago. USDA’s Cattle report showed a 2 percent increase in the number of dairy replacement heifers expected to calve, more than offsetting a minimal decline in milk cow numbers. Higher milk prices and lower feed prices are expected to prompt expansion of the dairy herd this year.
Milk production for the year is now projected to be 205.7 billion pounds, up 100 million from last month’s estimate. Despite the increased production, prices were raised as well thanks to strong domestic and global demand. Cheese is estimated at $1.815 to $1.885 per pound, up 4.5 to 5.5 cents from last month. Butter is 3 to 4 cents higher at $1.55 to $1.65 per pound, the dry whey price was nudged a penny higher at 56 to 59 cents while the nonfat dry milk price was reduced 2 cents to $1.785 to $1.845 this year.
The Class III milk price projection was raised 45 to 55 cents now pegged at between $18.35 and $19.05 this year. Class IV held steady at $19.80 to $20.60 while the all milk price estimate increased 15 to 25 cents now projected at between $20.85 and $21.55 for 2014.
Dairy prices continued to slide on the Chicago Mercantile Exchange on Monday. Cash cheese barrels lost 5.5 cents to $2.15 per pound while blocks fell 10.25 cents to $2.13. Three uncovered offers setting the market. Butter fell 5.5 cents on 8 loads sold. Class III futures for March lost another 22 cents while April lost 12 cents.
Read the full NASS WASDE report here:
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