The T.C. Jacoby Weekly Market Report Week Ending October 25, 2024
Dairy market analysts got a surprise this week when USDA released its Milk Production report on Monday with stronger than expected results. But perhaps even more unexpectedly, the agency revised the August figure from a modest loss to a 0.4% increase.
Dairy market analysts got a surprise this week when USDA released its Milk Production report on Monday with stronger than expected results. According to the report, milk production grew by 0.1% year over year in September. But perhaps even more unexpectedly, the agency revised the August figure from a modest loss to a 0.4% increase. At 9.328 million head, the national dairy herd was unchanged in September compared to prior month. However, it remains 38,000 head smaller than at the same time last year. Milk per cow grew by 0.5% and critically, milk component levels have continued to rise, further increasing the manufacturing value of the milk.
Milk production performance was mixed across the country’s key dairy states. In California, September output was virtually unchanged from prior year. However, these statistics were likely collected before the most severe stages of the H5N1 outbreak which has gripped California in recent weeks and is reportedly having a substantive impact on production. Meanwhile, production faltered in the Upper Midwest with volumes down 0.5% year over year in Wisconsin. The country’s other top five dairy states posted strong figures in September with Idaho production up 1.8% while Texas and New York posted gains of 4.9% and 1.2%, respectively.
October 28, 2024
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