It shows that the U.S. milk production continues to grow at an annual rate of less than 1 percent, and domestic commercial use of cheese and butter continues to increase somewhat faster than production. Despite this, milk prices are weakening going into the first half of 2016.
Weakness in world markets is transmitting low prices into the domestic nonfat dry milk and dry whey markets, while exports of butter and cheese remain well below levels of last year. The bimonthly MPP margin for November-December was $9.56, but most forecasts project that it will fall to between $7 and $8 during the next few months.
Read the full February Report.