Sluggish U.S. milk production is showing up in other key dairy industry statistics, including scant milk solids production growth, flat to declining production of major dairy products and a general drawdown of product inventories.
The modest level of stock drawdowns and stagnant milk and dairy product prices indicates that the market is currently broadly balanced, with lower milk production, flat milk solids production and growth in overall domestic use, offset by continued weakness in exports, resulting in flat growth in total use.
Stronger total demand and/or further reductions in milk production will be needed to bring higher milk prices faster.
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