Here are some updates in dairy news this week.

Milk futures remain high as feed costs drop to levels last seen in 2020, yet other market pressures such as lower butter and cheese prices and waning holiday demand, as well as recent milk production reports revealing gains for the first time in more than a year, complicate the matter.

U.S. milk production was down 3.9% in September compared to a month prior, according to the USDA’s September Milk Production report released Oct. 21. Production was up 0.1% year over year, while third quarterly estimates (July-September) were also up slightly from the same time in 2023.

The USDA’s World Ag Supply and Demand Estimates (WASDE) report offers forecasts for dairy, beef and feedstuffs.

Dairy producers visiting World Dairy Expo are seeing some of the best cows in the U.S. Returning home, many could see some of the strongest milk checks in almost two years.

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report Sept. 27, which includes feed costs used to calculate the August Dairy Margin Coverage (DMC) program margins and indemnity payments. August’s margin was $13.72 per hundredweight (cwt).

The outlook for dairy producers continues to be strong for the remainder of the year, despite milk futures retreating some – albeit still high compared to less fruitful years – and an anticipated high-yielding 2024 harvest. October’s income-over-feed cost projections remain in dairy producers’ favor for a profitable month with the margin just shy of $16 as of Sept. 24.

In the Economic Update, the Class I base price hits two-year high in October, fluid milk sales continue upward trend, and the USDA launches an assistance network to support financially distressed farmers.