Here are some updates in dairy news this week.

Milk futures remain high as feed costs drop to levels last seen in 2020, yet other market pressures such as lower butter and cheese prices and waning holiday demand, as well as recent milk production reports revealing gains for the first time in more than a year, complicate the matter.

U.S. milk production was down 3.9% in September compared to a month prior, according to the USDA’s September Milk Production report released Oct. 21. Production was up 0.1% year over year, while third quarterly estimates (July-September) were also up slightly from the same time in 2023.

The USDA’s World Ag Supply and Demand Estimates (WASDE) report offers forecasts for dairy, beef and feedstuffs.

In the Economic Update, we look at the expiration of the 2018 Farm Bill, the latest GDT trade event results, FSA interest rates for October and a weakening farmer sentiment.

The outlook for dairy producers continues to be strong for the remainder of the year, despite milk futures retreating some – albeit still high compared to less fruitful years – and an anticipated high-yielding 2024 harvest. October’s income-over-feed cost projections remain in dairy producers’ favor for a profitable month with the margin just shy of $16 as of Sept. 24.