June milk production climbed 0.7% in June, reports the United States Department of Agriculture. This is the first month this year that milk production did not climb more than at least 1%. Cow numbers, however, remain 50,000 head higher than last year.
“The report isn’t a game-changer,” say FCStone analysts in their report released this afternoon. “Both spot and futures markets bounced (or found aggressive supporting bids) ahead of the report today so it is possible we’ve priced in much of the report already.” (Note: Class III futures prices were up anywhere from 20¢ to 47¢/cwt this afternoon.)
“Moreover, the larger trend to the U.S. dairy complex is still pointing lower. However, we won’t easily excuse this report as status quo. And as such, expect that this report could underpin the market in moments of weakness,” the say.
California, the nation’s #1 Dairy State, saw milk production drop 4.3%. Most of that came from less milk per cow—nearly 3 lb./cow/day less than last year. California cow numbers are down just 1,000 head.
New Mexico followed a similar path, with June milk production down 4.5% and milk per cow down 95 lb./cow for the month. Cow numbers were unchanged.
Midwest states reported increases, with Wisconsin up 3.4% on milk, 8,000 head on cows, and 50 lb/cow more milk in June. Michigan was up 7.2%, with cow numbers up a whopping 21,000 head. South Dakota also saw milk production climb 12% (on a much smaller base) and cows numbers up 9,000 head.
For the second quarter ending in June, overall milk production was up 1.4%. That’s slightly lower than the 1.8% gain saw January through March.
Read the entire report here. http://usda.mannlib.cornell.edu/usda/current/MilkProd/MilkProd-07-21-2015.pdf