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 July. Highlights from the most recent report include:
- There were 5,716 Dairy-RP policies sold with active endorsements through the week ending Jul 10th, up 130 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 Jul 10th have covered a total of 95.0 billion pounds of milk, the equivalent of 21.6% of total 2019-2020 USDA projected milk production volumes. 95.2% 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 Jul 10th, followed by Wisconsin, Idaho and Texas.
- 12-month rolling average Class III Milk volume figures reached a record high level during the week ending Jul 10th, 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 5,716 Dairy-RP policies sold with active endorsements through the week ending Jul 10th, up 130 from the previous week. The increase in Dairy-RP endorsements was the largest experienced throughout the past four weeks.
Dairy-RP policies have been sold throughout 46 states through the week ending Jul 10th. Policies with active endorsements have been sold throughout 44 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 Jul 10th.
Pounds Covered:
Approximately 95.0 billion pounds of milk have been covered through the Dairy-RP program through the week ending Jul 10th, which is the equivalent of 475,100 Class III milk contracts. 95.2% of all milk production covered has been at the 95% coverage level through the week ending Jul 10th.
California led all states in pounds of milk production covered within the Dairy-RP program through the week ending Jul 10th, 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 Jul 10th, 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 Jul 10th were equivalent to 21.6% of total 2019-2020 USDA projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Jul 10th was equivalent to just 1.1% of total 2019-2020 projected production volumes.