After falling for eight months, national milk supplies rose 0.2% YOY in July according to the USDA. The overall increase in July was a result of a 0.7% YOY decline in cow numbers while yields were up 0.9% YOY- the sae expansion as in June. At 9,416m, cow numbers were up by 1,000 head relative to the prior month and 67,000 head below the same month in 2021. Revised June 2022 data showed national supplies fell 0.1% YOY with cow numbers down 4,000 head from May.

Among major producing states, July milk production in Wisconsin fell by 0.3% YOY. California rose 2.2% YOY, while New Mexico again posted the largest absolute decline among all states – down 8.1% YOY, which was the 13^th consecutive monthly contraction. Milk production in South Dakota, Texas and Iowa continued to improve at impressive rates, up 13.1% YOY, 6% YOY and 3.2% YOY respectively. Supplies continued to decline in Washington (-2.9% YOY), Pennsylvania (-0.9% YOY), Ohio (-3.9% YOY) and Michigan (-3.8% YOY).