Production Rises, Futures and Spot Markets Fall
On Monday, the USDA released the October Milk Production Report. Year over year production rose 0.8% over 2017 numbers, which mainly came from growth and production per cow. The number of cows on farms came out to be 9.37 million head which is 30,000 less than October 2017 and only 2,000 head less than the September report.
2018 Class III markets saw losses on the day as November felt 3 cents to $14.55 and December fell 18 cents to $14.66. 2019 Class III markets saw losses anywhere from 9 to 23 cents in January to June, leaving the first half average at $15.29. The second half of 2019 was mainly unchanged but rose 3 cents in July and one cent in October, leaving the second half average at $16.32.
The CME spot market was mainly lower on Monday other than butter increasing 5 1/2 cents at $2.33 per pound. Blocks fell 4 1/4 cents to $1.41 per pound. Barrels last 6 1/4 cents to $1.29 3/4 per pound. Grade A nonfat dry milk was unchanged at 88 1/2 cents per pound. Dried whey was also unchanged today at 43 cents per pound.