Milk Prices Climb Almost $1/cwt in Southeast

Production per cow for July averaged 1,969 pounds. The number of milk cows was 8.73 million head, down 1,000 head from June 2017. June production was revised up 0.1% to 16.9 billion pounds. For milk production in the top 5 producing states, California was down 0.2% from July a year ago; Wisconsin up 0.7%; Idaho down 0.2%; New York down 0.1%; and Texas up 14.8%. Other states with large production increases were Utah (9.6%), New Mexico (8.4%), Colorado (6.8%), Arizona (6.3%), and Kansas (4.0%). The states reporting a large decline in production compared to July 2016 were Oregon (-3.1%), Washington (-2.1%), and Virginia (-1.4%).

Milk Price and Utilization: The Southeast Uniform milk price for July was $19.64, up $0.94 from June and $2.44 higher than July 2016. The Appalachian Uniform milk price was $19.35, up $0.98 from June and $2.55 higher than July 2016. July’s Class III price was $15.45, down $0.99 from June, and $0.21 higher than July a year ago. The Class IV price was up $0.71 from June to $16.60, and $1.76 higher than July 2016. The Class I Mover price for September is $16.71, down $0.01 from August. The milk/feed ratio for July was 2.29, 0.02 lower than June.


Southeast Class I utilization was 67.51%, up 1.26% from June, and 1.19% lower than July a year ago. The Uniform butterfat price was $2.8681, up 29.21 cents from last month and 34.89 cents higher than July 2016. The July Class I price was $20.39. August Class I price is $20.52. Appalachian Class I utilization was 65.92%, up 2.36% from June, and 1.92% lower than July a year ago. The Uniform butterfat price was $2.8735, up 28.52 cents from last month and 34.93 cents higher than July 2016. The July Class I price was $19.99.

Cheese Production and Stocks: Total cheese production in June was 1.03 billion pounds, up 3.2% from a year ago while butter production was down 4.8% to 141 million pounds. Nonfat dry milk (NDM) production was up 11.6% compared to a year ago with total production at 164 million pounds while skim milk powder (SMP) production was down 28.4% to 40.0 million pounds compared to a year ago. Total cheese stocks at the end of July were up 8% from July a year ago and up 4% from the previous month while butter stocks were down 1% from last month and down 8% from a year ago.

Springer Prices and Cow Slaughter: At Smiths Grove, Kentucky on August 22, supreme springers were not tested while US approved springers were $1,250 to $1,400, down $13 compared to a month ago. Dairy cow slaughter in July was 225,800 head, down 10,900 head from June and 12,500 more than July 2016.



Source: Dairy Herd


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