DTN Closing Dairy Comments
Robin Schmahl DTN Contributing Analyst
Wed Jun 12, 2013 02:47 PM CDT

USDA reduced their projection of milk production for 2014 by 100 million pounds. They now estimated milk production to be 204.5 billion pounds. This is still an increase from the 201.8 billion pounds projected this year. The idea is that milk production is expected to increase next year as feed prices decline due to the potential for large supply. This will push greater production. As a result, they project milk prices to be lower. The Class III price this year is expected to average $18.00 while next is estimated to average $17.50. Class IV is expected to average $18.40 ...

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