November 2017 Dairy Situation & Outlook

Professor Bob Cropp’s 2017 November Dairy Situation & Outlook  full report is now available for download at UW Understanding Dairy Markets.  An exert follows below:

Domestic sales of butter and cheese should continue to be favorable in 2018. But, a crucial factor in where milk prices end up will be dairy exports. For most of this year milk production for four of major exporters—EU, New Zealand, Argentina and Australia was lower than the year before, U.S. was the exception with increased production. But, milk production has now started to increase in all five exporters meaning U.S. will face strong completion for markets in 2018. Unless there is good growth in world demand to absorb this increase in milk production world dairy product prices will decline. China and others are expected to increase their imports, but world prices have already started to decline, which will put pressure on U.S. prices. But, still I feel milk prices will end up higher than current futures market prices particularly for the last half of the year from a little lower increase in milk production and prices supported by domestic sales and exports.

 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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