2018 August Dairy Situation & Outlook

Professor Bob Cropp’s 2018 August Dairy Situation & Outlook  full report is now available for download at UW Understanding Dairy Markets.  The following is an excerpt from the report…

…..Milk prices for the remainder of the year are rather uncertain. Class III prices could improve to the high $15’s and even touch $16. The Class IV price is likely to be in the $15’s. Milk cow numbers could fall further with milk per cow improving some with cooler weather by October. Thus, the growth in milk production could stay at 1% or less which would be positive for prices. Dairy exports have been a positive factor for milk prices but the uncertainty is how exports will do for the remainder of the year since retaliatory tariffs are now in effect. EU is the leading dairy exporter. But, EU is experiencing some severe drought conditions which has reduce crop production and raising feed prices. New Zealand, the second largest exporter may see some recovery in milk production but now only projected to be about 2%. So the growth in world milk production is likely to be lower resulting in world milk prices staying relatively strong which is positive for exports. So milk price forecasts will change as more information on milk production and dairy exports come available.

 Also, for a video podcast including Dr. Bob Cropp and Dr. Mark Stephenson discussing the  Dairy Situation & Outlook, please visit Program on Dairy Markets & Policy.

For more information regarding dairy markets, please contact UW-Extension Dairy Markets Specialist Brian Gould or visit UW-Extension Understanding Dairy Markets.

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