The Latest: July - 2026
Producers Just Keep Adding Cows
On Tuesday, USDA’s latest Milk Production report confirmed that American dairy producers just keep adding cows. They crowded in another 19,000 cows in June, according to USDA’s best guess, and the dairy herd reached 9.677 million head. That’s 192,000 more cows than there were a year ago, nearly equivalent to adding the entire dairy industry of Arizona or Indiana to the U.S. herd in a 12-month span. The U.S. dairy herd is larger than it’s been since 1993.
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Milk production growth was strong across most of the United States in December, with the West and the Midwest posting particularly convincing figures. A dramatic expansion in the national dairy herd drove much of the increase.
View reportEven with a short week, there was no lack of action in the dairy markets. However, the market took the news poorly with most dairy commodities moving decisively downward.
View reportAfter the enthusiasm ignited by last week’s USDA announcement, most commodities struggled to keep the momentum going. The butter and cheese markets both finished the week on a softer note while dry products, especially whey, fared somewhat better.
View reportMonday’s announcement that the USDA is extending its Farmers to Families Food Box Program spurred dairy commodity prices upward, with all products seeing gains during Tuesday’s spot session.
View reportThere is no word yet on when USDA will begin spending its allocations, which makes it difficult to assess the repercussions for the dairy markets. The dairy funding could make a big splash if it is spent in a short time, or slowly ripple through the markets if spent steadily throughout the next year.
View reportA setback is possible, but it’s impossible to predict the timing or magnitude of a retreat from the highs. Seasoned traders warn “Don’t fight the trend.”
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