Executive Summary

Dairy Revenue Protection (Dairy-RP) participation figures provided by the USDA Risk Management Agency (RMA) were recently updated with values spanning through the fourth week of November. Highlights from the most recent report include:

• There were 824 Dairy-RP policies sold through the week ending Nov 23^rd, with 300 of the policies having active endorsements. Wisconsin led all states in the number of policies sold with active endorsements, followed by Idaho and California.
• Dairy-RP policies sold through the week ending Nov 23^rd have covered a total of 4.48 billion pounds of milk, the equivalent of approximately 22,400 Class III milk contracts but just 2.0% of total 2019 USDA projected milk production volumes. 83% of all milk covered has been at the 95% coverage level. Wisconsin has led all states in pounds of milk production covered within the Dairy-RP program through the week ending Nov 23^rd, accounting for over a quarter of all covered pounds, followed by Minnesota and Idaho.
• CME Class III Milk volume and open interest figures have increased substantially since Dairy-RP sign-ups began on Oct 9^th. Class III Milk volumes reached a 22 month high during the week ending Oct 26^th while Class III Milk open interest reached a 16 month high during the week ending Nov 16^th.

Additional Report Details

Policies Sold:

There were 824 Dairy-RP policies sold through the week ending Nov 23^rd, up 54 from the previous week. Of the policies sold, 300 had active endorsements through the week ending Nov 23^rd, up 26 from the previous week. Dairy-RP policies were only available for sale during one day throughout the week ending Nov 23^rd due to government reporting’s and Thanksgiving.

Dairy-RP policies have been sold throughout 28 states through the week ending Nov 23^rd. Policies with active endorsements have been sold throughout 25 states, led by Wisconsin, Idaho and California. Wisconsin has accounted for over one third of all policies sold with active endorsements through the week ending Nov 23^rd.

Pounds Covered:

Approximately 4.48 billion pounds of milk have been covered through the Dairy-RP program through the week ending Nov 23^rd, which is the equivalent of approximately 22,400 Class III milk contracts. 83% of all milk production covered has been at the 95% coverage level through the week ending Nov 23^rd.

Wisconsin has led all states in pounds of milk production covered within the Dairy-RP program through the week ending Nov 23^rd, accounting for over a quarter of all covered pounds, followed by Minnesota and Idaho.

CME Volume & Open Interest:

CME Class III Milk volume and open interest figures have increased substantially since Dairy-RP sign-ups began on Oct 9^th. Class III Milk volumes reached a 22 month high during the week ending Oct 26^th while Class III Milk open interest reached a 16 month high during the week ending Nov 16^th.

Dairy-RP milk production volumes covered through the week ending Nov 23^rd are equivalent to just 2.0% of total 2019 USDA projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Nov 23^rd was equivalent to 2.7% of 2019 projected production volumes.