Oct 2016 Dairy Situation and Outlook Oct 2016_Dairy Situation and... · 10/25/2016 15 International...
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10/25/2016 1 Dairy Situation and Outlook October 25, 2016
Transcript of Oct 2016 Dairy Situation and Outlook Oct 2016_Dairy Situation and... · 10/25/2016 15 International...
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Dairy Situation and Outlook
October 25, 2016
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Top States by Production
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Global Dairy Trade Auction, Oct 18
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International Milk Price Recovery
• Increasing world demand for cheese and butter
• Import growth in China, Philipines, Mexico and Russia
• Decline in EU, Argentina, and Australia milk production
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Michigan Basis
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$/cwt
Mailbox Class III
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Average margin for 2017= $9.62/cwt
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2017 Outlook
• Bullish
– Chinese milk powder purchases up
– Strong butter and cheese consumption world‐wide
– Milk production moderating in major countries
• Bearish
– Large stocks world‐wide, particularly powders
– US milk production in 2016 forecasted at +1.7%
