oct 2016 dairy situation and outlooksteind/mkt oct 2016_dairy situation and... · 2016-10-26 ·...
TRANSCRIPT
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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%