October fluid milk sales were 1.3% higher than a year earlier, which continued to keep past three-month and year-to-date sales growth positive. Yogurt and butter showed particularly strong U.S. consumption gains during August-October, despite both reaching their highest ever retail prices during the period.
Following 16 consecutive months when U.S. dairy cows were below year-earlier numbers, USDA reported the national milking cow herd grew by 10,000 cows year-over-year in October. Together with other factors, this likely indicates a return to expansion mode for U.S. milk production. Stocks of all cheese dropped almost to pre-pandemic levels at the end of October, likely driven by constrained production growth and robust exports. Cheese price weakness was responsible for dropping the Class III price by almost $3/cwt in November from a month earlier.
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