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 end of the second week of June. Highlights from the most recent report include:

• There were 5,475 Dairy-RP policies sold with active endorsements through the week ending Jun 12^th, up 263 from the previous week. Wisconsin led all states in the number of policies sold with active endorsements, followed by Minnesota, California and Michigan.
• Dairy-RP policies sold through the week ending Jun 12^th have covered a total of 93.2 billion pounds of milk, the equivalent of 21.1% of total 2019-2020 USDA projected milk production volumes. 95.5% of all milk covered has been at the 95% coverage level. California led all states in pounds of milk production covered within the Dairy-RP program through the week ending Jun 12^th, followed by Wisconsin, Idaho and Texas.
• 12-month rolling average Class III Milk volume figures reached a record high level during the week ending Jun 12^th, while 12-month rolling average Class III Milk open interest figures continued to rebound from recently experienced record low levels.

Additional Report Details

Policies Sold:

There were 5,475 Dairy-RP policies sold with active endorsements through the week ending Jun 12^th, up 263 from the previous week. The weekly increase in Dairy-RP endorsements was the largest experienced on record.

Dairy-RP policies have been sold throughout 46 states through the week ending Jun 12^th. Policies with active endorsements have been sold throughout 41 states, led by Wisconsin, Minnesota, California and Michigan. Wisconsin has accounted for nearly 30% of all policies sold with active endorsements through the week ending Jun 12^th.

Pounds Covered:

Approximately 93.2 billion pounds of milk have been covered through the Dairy-RP program through the week ending Jun 12^th, which is the equivalent of 466,000 Class III milk contracts. The weekly increase in pounds covered was the largest experienced throughout the past ten weeks. 95.5% of all milk production covered has been at the 95% coverage level through the week ending Jun 12^th.

California led all states in pounds of milk production covered within the Dairy-RP program through the week ending Jun 12^th, followed by Wisconsin, Idaho and Texas. The aforementioned states combined to account for over half of all pounds of milk production covered within the Dairy-RP program.

CME Volume & Open Interest:

CME Class III Milk volume and open interest figures increased substantially following the initial wave of Dairy-RP sign-ups. More recently, 12-month rolling average Class III Milk volume figures reached a record high level during the week ending Jun 12^th, while 12-month rolling average Class III Milk open interest figures continued to rebound from recently experienced record low levels.

Dairy-RP milk production volumes covered through the week ending Jun 12^th were equivalent to 21.1% of total 2019-2020 USDA projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Jun 12^th was equivalent to just 1.1% of total 2019-2020 projected production volumes.