High summer culling rates are helping kick off better milk prices this fall.

On Aug. 23, 2023, Dana Coale, deputy administrator of the USDA Agricultural Marketing Service (AMS) Dairy Program, and presiding Judge Channing D. Strother, USDA chief administrative law judge, welcomed industry representatives, USDA staff and other attendees to the first day of the National Federal Milk Marketing Order (FMMO) Pricing Formula Hearing and provided an overview of the hearing process.

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

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.

The preliminary estimate of overall June milk production compared to a year earlier was unchanged to slightly lower in the U.S., and up just 0.2% in the major dairy states, the fourth straight month output was up less than 1% from a year ago.