In its price outlook released this afternoon, USDA is projecting the U.S. all-milk price will be in the range of $17.30 to $17.70 for the fourth quarter of 2008. The price is projected to dip to $16.70 to $17.40 in the first quarter of 2009.
USDA is projecting U.S. dairy cows will pump out 188.4 billion lb. of milk this year, another record, and up 2.2% over 2007.
Cow numbers are expected to decline to 9.265 million head in the fourth quarter, down 15,000 head from the third quarter, and to drop another 25,000 head by the third quarter of 2009.