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Class III and IV milk futures rallied after a USDA Milk Production Report showed U.S. milk output essentially flat in 2023. December production was down 0.3% year over year at 18.843 billion pounds, and total cow numbers fell 39,000 head to 9.357 million.
Flat production and shrinking herd numbers tighten the milk supply outlook, supporting dairy product prices and dairy farm income. Lower milk output also reduces byproduct supply for dairy cattle feed.
centerfordairyexcellence.orgFeb 2, 2024After 237 past bullish report events, Milk (Class III) moved a median +0.0% over 5 sessions (51% higher; middle half -0.3% to +0.6%), and +1.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
