USDA Milk Report Shows Little Change
The USDA released their monthly milk production report on Thursday and the June results were similar to the prior five of 2017. June milk production was up 1.7% from the June 2016 numbers in the major 23 states and totaled 16.9 billion pounds.
USDA also revised the May 2017 production number, 17 million pounds higher to 17.8 billion pounds. Total production throughout the United States came in at 18.05 billion pounds. Milk cows were added to the herd again in June and totaled 9.4 million head up 78,000 from a year ago. May’s milk cow numbers were revised 7,00 head higher. While June added 4,000 additional cows after the revision took place.
CME spot dairy product markets had little change on Friday. Blocks gained a quarter cent on one trade to $1.70 ¾ cent per pound. Barrels were unchanged on five trades at $1.41 even. Butter markets traded nine loads and dropped 2 ½ cents to $2.58 ½ cents.
While Grade A nonfat dry milk added a penny and ¼ to 87 ¼ cents on six trades. Class III markets felt softness from the beginning and traded 19 cents lower in August and 14 cents lower in September.
Fourth quarter prices dropped 1 to 5 cents. Second half 2017 average is now trading at $16.42 cwt. March 2018 was down 10 cents per cwt. Class IV markets had November trade a penny higher to $17.10 per cwt.