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Despite a highly disrupted trade environment, June capped a six-month period that saw U.S. dairy product exports post double-digit growth. On the other hand, exports of hay dipped to a five-month low, while exports of dairy replacement heifers fell to the lowest level in more than four years.

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There apparently has been an update in the decade-long saga of the DairyAmerica milk powder lawsuit. Meanwhile, about 26,000 U.S. dairy farmers are waiting for approximately $26 million in settlement agreement payments.

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The June U.S. average milk price jumped while feed costs moved lower, resulting in the largest monthly Dairy Margin Coverage (DMC) program income margin since February. However, the weight of negative producer price differentials (PPDs) under the Federal Milk Marketing Order (FMMO) system – not included in risk management program calculations – along with high levels of depooling, left the announced milk price and DMC margin somewhat deceptive.

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