2018 September Board Book
National Dairy Situation & Outlook USDA Estimates
Federal Order Minimum Class Prices
Hundredweight Prices Class I Phoenix, Arizona
Apr.
May.
Jun.
$16.45 $16.79
$17.60 $17.15 $18.50
Milk Production
Portland, Oregon $16.00 $16.34
Boston (Northeast)
$17.35 $17.69 $14.47 $15.18
Monthly: USDA estimates milk production in the 23 major U.S. States increased 0.7% in April 2018, compared to April 2017. USDA reports that California milk production increased 0.4% compared to April 2017 (with 19,000 less cows and 30 more pounds of milk per cow). Among other western states, compared to April 2017, Arizona was up 1.1%; New Mexico was up 2.6%; andWashington was up 3.1%. Half of the top ten milk producing states reported a production increase. Overall, the largest percent increase was reported by Colorado at 9.9% growth in milk production (on 12,000 more cows and 45 more pounds of milk per cow). Quarterly: For the first quarter of 2018 compared to the fourth quarter of 2017, U.S. milk cow numbers increased to 9.407 million head, milk production per cow increased to 5,781 pounds; the net effect was an increase in milk production to 54.4 billion pounds. USDA projects that for the second quarter of 2018 compared to the first quarter of 2018, milk cow numbers will increase to 9.410 million head, production per cow will increase to 5,965 pounds; the net effect would be an increase in milk production to 56.1 billion pounds. Milk Prices Comparing the first quarter of 2018 to the fourth quarter of 2017, the Class III price decreased from $16.34/cwt. to $13.87/cwt.; the Class IV price decreased from $14.12/cwt. to $13.01/cwt.; and the U.S. average all-milk price decreased from $17.73/cwt. to $15.67/cwt. Utility Cow Prices Comparing the first quarter of 2018 to the fourth quarter of 2017, the average U.S. utility cow price was up $2.92/cwt. to a national average of $61.60/cwt. USDA projects that the utility cow price will average $60-$64/cwt. in the second quarter of 2018.
Class III
N/A
USDA Dairy Cow Culling Activity
U.S. Dairy Cows
West Region 2 Price Range
Region 9 1 Dairy Cows
Week Ending
Head
Head
$/cwt.
04/20/18
14,100
59,900
$69-$70
04/27/18
14,100
57,200
$63-$66
05/04/18
13,900
57,500
$67-$69
05/11/18
13,300
55,300
$68-$70
1 Region 9 includes AZ, CA, HI and NV 2 West region includes AZ, NV, UT, CA, ID, OR andWA Source: USDA Market News: Report LM_CT168 and SJ_LS714
USDA Commercial Cold Storage Report
Butter American Cheese Nonfat Dry Milk 2017 2018 2017 2018 2017 2018 In Million Pounds
Month
January
222 270 273 292 310 307 280 256 218 159 169 314
227 266 274 307
722 745 773 805 810 832 801 780 740 733 747 816
742 763 767 781
227 307 263 298 246 298 267 274
February
March
April
May
280
June
298 296 313 321 317 317 320
July
August
September
October
November December
Source: USDA, Farm Services Agency, NASS Cold Storage and Dairy Products. (As published in the Dairy Market News)
USDA Milk-Feed Price Ratio
Top Ten Milk Production States - April 2018 (Percent Change from Same Month/Previous Year)
USDA reports that the milk-feed price ratio for April 2018 was 1.90 (down from 1.97 in March 2018). The current ratio of 1.90 means that a dairy producer can buy 1.90 pounds of feed for every pound of milk sold. The prices used to calculate the April 2018 milk-feed price ratio were: corn $3.58/bushel; soybeans $9.83/bushel; alfalfa hay $183/ton; all-milk price $15.80/cwt.
-1.4%
1. California +0.4%
6. Michigan
-0.6% -2.4% +3.5%
7. Pennsylvania -1.7%
2. Wisconsin 3. New York
-2.2% +2.6% +3.1%
8. Minnesota 9. New Mexico 10. Washington
4. Idaho
5. Texas +7.0%
Prices used to calculate the milk-feed price ratio are based on U.S. prices and don’t necessarily reflect California prices.
Information from the USDA-NASS publication “Milk Production” and the USDA-ERS publication: “Livestock, Dairy, and Poultry Outlook.”
California Dairy Review
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