Less Cows, More Milk
A strong day in the Class III market came prior to the release of the January Milk Production Report on Tuesday. The USDA reports that the US saw an increase of 2000 cows since December, though a total of 83,000 cows left the herd in 2018. These numbers however resulted from sweeping adjustments made to every month previously reported in 2018.
Milk production per cow increased 1.8% above a year ago to 1,988 lbs per cow. This gain helped drive 2018 to an overall growth of 1% in milk production over 2017 production numbers.
The CME spot dairy product trade had limited volume trading on Tuesday. Butter was up 1 ¼ cent to finish at $2.20/lb on 2 trades. Cheddar blocks were unchanged with zero loads moving ending at $1.52/lb, though Cheddar barrels were up 3 ½ cents to $1.40 ¼ cent on 1 trade.
Grade A nonfat Dry Milk was down 1 ¼ cent to $0.96 ¼, and Dry whey was unchanged to finish at $0.34 even.
Class III milk up 14-18 cents in the second quarter to finish with a quarter average at $15.26/cwt. Second half saw more moderate gains. Finishing the day averaging $16.27.
For Commodity Risk Management Group, this is Jenny Wackershauser on Know your Markets.