USDA released their October 2022 Milk Production Report on Monday. Results had the U.S. milking herd pegged at 9.418 million, up 1,000 head from last month. September’s report was revised 6,000 head higher for a 7,000 cow addition report-to-report. Compared to last year, the 2022 herd now stands 31,000 higher. Milk Production as a whole totaled 18.850 billion pounds, up 1.2% from last year which ended up slightly behind the previous couple months but within expectations. By region, the Southwest (+3.2%) led year-over-year comparisons followed by the Midwest (+2.2%), Pacific Northwest (+1.7%), Northeast (+1.3%), and the Mideast (+0.2%). Lagging behind was California at -0.5%.
CME spot dairy auction results saw barrel cheese falter 8.5 cents/lb to $1.8425. Block cheese dipped 3.25 cents to $2.20/lb. Butter put together an impressive 8 cent rebound with settlement coming in at $2.90/lb. Whey and nonfat dry milk both closed unchanged at $0.44/lb and $1.4275/lb, respectively.
CME Class III milk futures were under pressure all day. December ended 22 cents softer at $21.25/cwt. January through June 2023 traded 13-33 lower with the first half average sitting at $20.06/cwt. Second half months ranged from 8-20 cents softer. Class IV traded Monday with an unchanged to slightly lower tone.
