Milk production for this year has been lowered back down to 206.1 billion pounds from last month's forecast of 206.3 billion pounds. This brings the forecast growth for the year down to 2.4% from 2.5%.
For the year to August, milk production has grown by 1.8%. Production growth has increased in recent months, with June, July and August posting growth of 2.2%, 3.9% and 2.5%.
Margins continue to be favourable. The all-milk price forecast was raised 20-30c to US$24.10 – 24.20. Meanwhile the forecast season-average farm price of corn was lowered 10c to $3.10 – 3.70 per bushel.
Forecast prices for 2014 for cheese, butter and whey were increased, while nonfat dry milk was lowered. Domestic demand is said to continue supporting prices.
Export forecasts have been revised down as higher US product prices are less competitive. Correspondingly import forecasts were revised up.