December 19, 2018

Milk Production On The Rise As Prices Take A Tumble

 |  By: Know Your Market

The November Milk Production report was released on Wednesday by the USDA and resulted in year over year growth of 0.6%. 


The October cow numbers were adjusted 3,000 head higher to 9.368 million while November cow numbers were published at 9.36 million. Compared to last November, the U.S. milking herd is now 38,000 head smaller. Milk per cow in the month of November grew 19 pounds year over year, or 1%. In the end, 17,370,000 pounds of milk were produced during November 2018. 


The CME spot product market on Wednesday failed to produce gains. Butter lost 2 cents following 3 trades, bids and offers. Butter closed at $2.18 per lb. Barrels fell a half cent with 3 uncovered offers left hanging to close at $1.31 and a half cent. Cheddar blocks were unchanged at $1.41 per lb. Grade A nonfat dry milk declined three-quarters of a cent to 93 and a half cents per lb. Dry whey was unchanged at 47 and one quarter cent. 


Milk futures markets were lower all day in Class III. January through June 2019 dropped 10-21 cents per cwt. while the second half softened 1-6 cents. Class IV was mixed with January through December 2019 results ranging from 7 cents lower to 3 cents higher.