Milk production expanded 2% in July according to the USDA. The increase was a 4-month low and followed a 2.9% YOY growth in June. The milking herd again declined, by 3,000 head compared to the prior month to 9.500m (as June figures were revised lower). While down on the multi-decade high reached in May, this was still 128,000 head higher YOY. The YOY growth in average yield per cow for July was 0.7%, a 14-month low. July was the fourteenth consecutive month of expansion in US milk output.

Wisconsin and Texas jointly accounted for 54% of the national YOY milk growth in July (up from 29% in June), increasing by 4.6% and 7.2% respectively. This more than offset weaker trends in California (-0.7%) and Washington (-6.7%).