National herd recovery continued in September with milking cows up 6,000 head over August and up 46,000 year on year for the 24-state average. Milk yield was good, registering 36 lbs above September 2019, and total milk production increased 2.4 percent above prior year’s level.
With the country’s milk herd climbing again and the risk of another wave of infections looming as we head into fall and cooler temperatures, milk supply appears adequate, which may forestall any rally in the dairy complex.
The Cold Storage report showed butter stocks down at 343 million lbs in September. This represents a drop of nearly 30 million lbs, but the stocks figure was still an all-time high for September. Consistently high stocks have continued to pressure butter AA prices on CME.
The butterfat-containing products of butter and cheese showed the biggest gains, 3.3 percent and 3.0 percent, respectively. In total, almost 35,000 MT of products exchanged hands on decent volume.