After falling for seven consecutive months, national milk supplies edged up 0.2% YOY in June according to the USDA. The overall increase in June was a result of a 0.8% YOY decline in cow numbers while yields were up 1% YOY- the strongest lift since August last year. At 9,423m, cow numbers were up by 14,000 head relative to the prior month and 88,000 head below the same month in 2021.

Among major producing states, June milk production in Wisconsin rose by 1.5% YOY. California rose 0.2% YOY, while New Mexico again posted the largest absolute decline among all states – down 12.3% YOY, which was the 12^th consecutive monthly contraction. Milk production in South Dakota, Texas and Iowa continued to improve at impressive rates, up 14.7% YOY, 6.9% YOY and 3% YOY respectively. Supplies continued to decline in Washington (-4.2% YOY), Pennsylvania (-0.6% YOY), Ohio (-1.5% YOY) and Michigan (-1% YOY).