July 22, 2019

Product Inventories, Cow Numbers Inch Lower

 |  By: Know Your Market

The USDA released two reports in the dairy space on Monday afternoon; the milk production report and cold storage reports. In the milk production report, the USDA went back and revised milk cow numbers in every month of 2019 with the exception of May. Cow numbers totaled 9.323 million, down 10,000 head from the May reported number. After revisions, the U.S. milking herd has now shrunk by 29,000 cows in 2019 thus far. Milk per cow in June was 1,955 pounds. Total milk production came in at 18.23 billion, three tenths of a percent below a year ago. 

The cold storage report revealed butter and cheese inventories below year ago levels. Butter stocks were reported slightly less than 328 million while total natural cheese was printed at 1.381 billion pounds. Both were down 1% from prior year levels. Total beef in freezers throughout the U.S. was 395 million pounds, down 12% from last year and 3% below last month. 

Class III milk market results were mixed to begin the week. Prices ranged from 6 cents higher to 6 cents lower July 2019 through June 202. First half 2020 prices even traded as high as $17 per cwt on it’s average. Class IV milk dropped 4-11 cents August through January 2020. CME spot product markets had blocks up 1.25 cents to $1.7925. Barrels were up three quarters of a cent to $1.7125. Butter lost 2.25 cents to $2.375. Grade A nonfat dry milk was unchanged while dry whey added a quarter cent.