The National Milk Producers Federation (NMPF) has released the Dairy Market Report for February 2016. The report shows that U.S. milk production continues to grow at an annual rate of less than 1 percent, while domestic commercial use of cheese and butter continues to increase somewhat faster than production.

Despite these trends, milk prices are weakening going into the first half of 2016. Weakness in world markets have begun to transmit low prices into the domestic nonfat dry milk and dry whey markets, while exports of butter and cheese remain well below levels of last year.

The bimonthly Margin Protection Program (MPP) margin for November-December was $9.56, but most forecasts project that it will fall to between $7 and $8 during the next few months.

Read the full report here