On the Chicago Mercantile Exchange milk futures closed higher Tuesday ahead of a bearish milk production report. The USDA reports that the US saw an increase of 2000 cows since December, though a total of 83,000 cows left the herd in 2018. These numbers, however, resulted from sweeping adjustments made to every month previously reported in 2018. Milk production per cow increased 1.8% above a year ago to 1,988 lbs per cow. This gain helped drive 2018 to an overall growth of 1% in milk production over 2017 production numbers.
Class III milk up 14-18 cents in the second quarter to finish with a quarter average at $15.26/cwt. Second half saw more moderate gains. Finishing the day averaging $16.27. March Class III milk down a penny at $14.92. April up 18 cents at $14.98. May 18 cents higher at $15.25. June up 14 cents at $15.55. July through November contracts were a penny to 14 cents higher.
Dry whey unchanged at $0.34. Blocks unchanged at $1.52. Barrels up $0.0350 at $1.4025. One trade was made at that price. Butter up $0.0125 at $2.28. Two trades were made at $2.2775 and $2.28. Nonfat dry milk down $0.0125 at $0.9625.