USDA, in its monthly Livestock, Poultry and Dairy Outlook report released today, expects dairy cow numbers to average 8.94 million head next year, a decline of some 350,000 head. Even then, milk prices won't rebound all that much given weakened export demand.
Cheese prices will likely average about $1.25/lb this year. Next year, they'll climb to an average price of $1.58 to $1.68/lb, projects USDA.
Corn prices are expected to exceed $4/bu this year and next, though soybean meal prices should decline to $320/ton this year. The milk-feed price ratio will stay below 2.0 this year and next, says USDA.