The US Department of Agriculture has released its February World Agricultural Supply and Demand Estimates (WASDE) report.

The milk production estimate for 2016 is 211.9bn pounds (96.32mt), up slightly from last month’s estimate of 211.8bn pounds (96.27mt). The new estimate is based on increased cow numbers and higher yield per cow than the previous forecast.

The all milk price forecast was adjusted slightly lower to an average range of $15.3-$16/100 pounds (30.02-31.39c/litre).

US export volume forecasts were lowered for most dairy products due to large global supplies and a relatively strong US dollar. The weakness was not across all dairy products – prospects for non-fat dry milk (NFDM) and whey are lowered by weakness in global markets, but butter prices were raised by stronger-than-expected domestic demand.

The report also showed US corn and soybean ending stocks much higher than previously estimated.