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 final week of November. Highlights from the most recent report include:

  • There were 962 Dairy-RP policies sold through the week ending Nov 30th, with 386 of the policies having active endorsements. The weekly increases in policies sold and policies with active endorsements were the largest experienced since the initial week of sales. Wisconsin led all states in the number of policies sold with active endorsements, followed by California and Idaho.
  • Dairy-RP policies sold through the week ending Nov 30th have covered a total of 6.28 billion pounds of milk, the equivalent of approximately 31,400 Class III milk contracts but just 2.8% of total 2019 USDA projected milk production volumes. 81% 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 30th, accounting for over one fifth of all covered pounds, followed by Idaho 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 962 Dairy-RP policies sold through the week ending Nov 30th, up 138 from the previous week. Of the policies sold, 386 had active endorsements through the week ending Nov 30th, up 86 from the previous week. The weekly increases in both policies sold and policies sold with active endorsements were the largest experienced since the initial week of sales.

Dairy-RP policies have been sold throughout 30 states through the week ending Nov 30th. Policies with active endorsements have been sold throughout 26 states, led by Wisconsin, California and Idaho. Wisconsin has accounted for over one third of all policies sold with active endorsements through the week ending Nov 30th.

Pounds Covered:

Approximately 6.28 billion pounds of milk have been covered through the Dairy-RP program through the week ending Nov 30th, which is the equivalent of approximately 31,400 Class III milk contracts. 81% of all milk production covered has been at the 95% coverage level through the week ending Nov 30th.

Wisconsin has led all states in pounds of milk production covered within the Dairy-RP program through the week ending Nov 30th, accounting for over one fifth of all covered pounds, followed by Idaho 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 Nov 30th are equivalent to just 2.8% of total 2019 USDA projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Nov 30th was also equivalent to 2.8% of 2019 projected production volumes.

 

2018-12-04T15:32:18-06:00