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 August. Highlights from the most recent report include:
- There were 6,258 Dairy-RP policies sold with active endorsements through the week ending Aug 14th, up 53 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 Aug 14th have covered a total of 98.4 billion pounds of milk, the equivalent of 22.4% of total 2019-2020 USDA projected milk production volumes. 94.6% 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 Aug 14th, followed by Wisconsin, Idaho and Texas.
- 12-month rolling average Class III Milk volume figures reached a record high level during the week ending Aug 14th, 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 6,258 Dairy-RP policies sold with active endorsements through the week ending Aug 14th, up 53 from the previous week. The increase in Dairy-RP endorsements was the smallest experienced throughout the past six weeks.
Dairy-RP policies have been sold throughout 46 states through the week ending Aug 14th. Policies with active endorsements have been sold throughout 45 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 Aug 14th.
Pounds Covered:
Approximately 98.4 billion pounds of milk have been covered through the Dairy-RP program through the week ending Aug 14th, which is the equivalent of 491,900 Class III milk contracts. 94.6% of all milk production covered has been at the 95% coverage level through the week ending Aug 14th.
California led all states in pounds of milk production covered within the Dairy-RP program through the week ending Aug 14th, 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 Aug 14th, 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 Aug 14th were equivalent to 22.4% of total 2019-2020 USDA projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Aug 14th was equivalent to just 1.0% of total 2019-2020 projected production volumes.