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 third week of December. Highlights from the most recent report include:

  • There were 1,546 Dairy-RP policies sold through the week ending Dec 21st, with 869 of the policies having active endorsements. The weekly increases in policies sold and policies with active endorsements were the second largest experienced since the initial week of sales, trailing only the previous week sales. Wisconsin led all states in the number of policies sold with active endorsements, followed by Minnesota, California and Idaho.
  • Dairy-RP policies sold through the week ending Dec 21st have covered a total of 11.84 billion pounds of milk, the equivalent of approximately 59,200 Class III milk contracts and 5.4% of total 2019 USDA projected milk production volumes. 87% 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 Dec 21st, followed by Idaho, California and Minnesota.
  • CME Class III Milk volume and open interest figures have increased substantially since Dairy-RP sign-ups began on Oct 9th. Class III Milk volumes reached a 22 month high during the week ending Oct 26th while Class III Milk open interest reached a 16 month high during the week ending Nov 30th.

Additional Report Details

Policies Sold:

There were 1,546 Dairy-RP policies sold through the week ending Dec 21st, up 159 from the previous week. Of the policies sold, 869 had active endorsements through the week ending Dec 21st, up 149 from the previous week. The weekly increases in both policies sold and policies sold with active endorsements were the second largest experienced since the initial week of sales, trailing only the previous week sales.

Dairy-RP policies have been sold throughout 35 states through the week ending Dec 21st. Policies with active endorsements have been sold throughout 32 states, led by Wisconsin, Minnesota, California and Idaho. Wisconsin has accounted for nearly 40% of all policies sold with active endorsements through the week ending Dec 21st.

Pounds Covered:

Approximately 11.84 billion pounds of milk have been covered through the Dairy-RP program through the week ending Dec 21st, which is the equivalent of approximately 59,200 Class III milk contracts. 87% of all milk production covered has been at the 95% coverage level through the week ending Dec 21st.

Wisconsin has led all states in pounds of milk production covered within the Dairy-RP program through the week ending Dec 21st, followed by Idaho, California and Minnesota.

CME Volume & Open Interest:

CME Class III Milk volume and open interest figures have increased substantially since Dairy-RP sign-ups began on Oct 9th. Class III Milk volumes reached a 22 month high during the week ending Oct 26th while Class III Milk open interest reached a 16 month high during the week ending Nov 30th.

Dairy-RP milk production volumes covered through the week ending Dec 21st are equivalent to 5.4% of total 2019 USDA projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Dec 21st was also equivalent to 2.6% of 2019 projected production volumes.

2018-12-27T16:34:26+00:00