World Agricultural Outlook Board Chairman Gerry Bange says the dairy outlook for November shows a lower forecast from October.
"What we are looking at now is an all milk price at $15.75 per hundredweight for the 2009 year," Bange says. "That's down about 14% from the $18.35 it will have recorded in 2008."
The reason for the drop in the all milk price is similar sharp reductions in the price for Class III and Class IV categories.
"Class III price is now at $15.20 per hundredweight, that's down about 7% from our previous forecast and 12% from last year, and really reflects lower cheese and whey prices," Bange says. "The one that took a bigger hit is the Class IV price, which is down rather sharply reflecting a sharp reduction in nonfat dry milk price."
Down 11% from October and 19% from last year, Bange says increased competition in nonfat dry milk markets coupled with global economic conditions are behind the decrease in milk prices.