USDA is finally calling for milk production to decline albeit slightly as farmers slow output from the increasing cow herd.
In its March supply and demand report, USDA forecast butter, nonfat dry milk, and whey prices higher while calling for improved domestic and export demand. Cheese prices were left unchanged as weaker prices in the first half of this year offset expectations for improved demand in the second half. Higher product prices are also leading to improved Class III and Class IV prices.
