Although the all-milk price will go up in the fourth quarter, it will still be well below cost-of-production.

According to the “Livestock, Dairy and Poultry Outlook” released yesterday by the USDA, the all-milk price will range from $12.50 to $13.20 per hundredweight during the last three months of this year. That is up from the $11.05-$11.45 forecast for the third quarter, but down considerably from the $18.29 average all-milk price posted in 2008.

Meanwhile, the number of milk cows will continue to decline. The USDA predicts the number in the fourth quarter of this year to average 9.035 million -– down from the 9.312 million at the start of this year. Tuesday's  “Milk Production” report from USDA estimated there were 9.190 million milk cows in the U.S. during July.

For more of USDA’s projections, go to Livestock, Dairy and Poultry Outlook and then click "Dairy Forecast."

Source: USDA