Milk checks for September production will again reflect stronger protein and Class III milk prices. That will change on October production, with struggling cheese prices weakening the Class III price and widening the Class III-IV price spread, adding substantial Class IV depooling incentives.

Compared to a month earlier, U.S. average feed costs were lower and milk prices were up, pushing the milk income margin up almost $3 per hundredweight from July’s historic low.

Lower milk production cut into butter inventories in cold storage in August. The tighter supplies are driving prices higher.

With a federal government shutdown possible, October’s dairy risk management calendar has the potential to be scarier than Halloween.

The Federal Reserve Board’s Federal Open Market Committee (FOMC) voted to maintain the interest rate for federal funds at 5.5%.

Dairy producers who dumped milk due to weather-related disasters in 2020, 2021 and 2022 may be eligible for financial assistance.

The four-month decline in U.S. cow numbers may have come to a halt.

Here’s Progressive Dairy’s monthly review of August FMMO data  to provide some additional transparency to your milk check.

DMC margins are expected to improve through the end of 2023, but current futures prices indicate indemnity payments at top coverage levels are likely in 10 of 12 months.