April milk output rose +2.7% YOY, ahead of expectations. California growth was part of the better performance, with output up 2.3%. (Notably, March was also revised higher by a full percentage point to +1.8%). Other major milk producing regions continued along recent trajectories. Wisconsin production rose +2.9% YOY, along with hikes in Texas (+4.4% YOY), Idaho (+3.0% YOY) and New York (+0.9% YOY).

Cow numbers continue to climb at a steady clip. With USDA’s March revision, cow numbers were up 24,000 head report-to-report. Recent low slaughter rates and record-high beef values will likely keep this trend intact for the months ahead.