Here’s Progressive Dairy’s monthly review of the numbers to provide some additional transparency to your milk check.

Reductions in cow numbers and weaker average milk output per cow contributed to a decline in U.S. and major state milk production in July, the first year-over-year decline since June 2021-22.

Despite a better outlook for milk prices, corn and soybean meal price projections were also raised.

Farm lending activity at commercial banks slowed through the first half of 2023 as interest rates continued to push higher.

Like the previous month, milk checks for July production will reflect weak protein and Class III milk prices. The wide price spread between Class III-IV milk prices means Class IV depooling will remain heavy.

Milk producers in just 13 counties marketed 25% of the total Federal Milk Marketing Order (FMMO) milk marketings in December 2022.

Despite weakening milk prices this summer, U.S. average prices for replacement cows moved higher, while strong beef prices continued to push market cow prices to an eight-year high.

DMC indemnity payments will surpass income margins for many dairy producers.

The long-anticipated national public hearing to consider proposed amendments to Federal Milk Marketing Orders (FMMO) will begin on Aug. 23, in Carmel, Indiana.

Those looking for bright spots in this year’s dairy outlook have found their search increasingly challenging.