August milk production increased 1.7% year-over-year, coming in just slightly below pre-report expectations. California output declined 0.7%, perhaps a bit weaker than expected. Milk flows increased in all other key regions, including Wisconsin (+1.5% YOY), Texas (+5.1% YOY), Idaho (+1.6% YOY) and New York (+0.9% YOY).

     Cow numbers were unchanged from the prior report at 9.71 million head. But USDA revised the July data lower, so on paper, the herd grew 15,000 head during August. This leaves the cow number data with an inconsistent pattern over the past three months, but the main takeaway is that the dairy herd remains at its highest level since the early 1990s.