The National Milk Producers Federation and Dairy Management Inc. August Dairy Market Report is out.

Milk prices in many major milk-producing countries have plummeted to levels that are producing severe financial stress for their farmers. However, on the back of stable domestic consumption, the milk price outlook in this country is generally more positive. Domestic consumption of dairy products has been strong throughout 2015 and has helped to offset both increased milk production and declining U.S.exports. Milk production increases have moderated in recent months and may help to offset weaker Federal order July prices. Feed prices have showed considerable variability this growing season due to the wet spring in parts of the South and Eastern corn belt and then favorable growing conditions of late in the Western corn belt. Milk and feed futures prices indicate the MPP margin will improve during the last third of 2015 following a potential payment as high as $0.50 per hundred weight during the July-August period.

The complete report can be found here.