Fluid Milk and Cream - Western U.S. Report 33

Milk and cream production are mixed in the West, and output is being affected by hot weather, fires, and smoke. 

California milk production is showing small increases week-over-week, with some producers reporting planned maintenance. 

In the mountain states, high temperatures persist and are not cooling off at night. Farm-level milk output in Idaho is tight, while contacts in Utah report heavy milk production despite ongoing fires and smoke. 

Production in the Pacific Northwest is steady. Class I demand is increasing as schools reopen. Class II demand is soft, while Class III and IV demands remain steady. 

Stakeholders describe cream supplies as long, though contracts are being met. Cream multiples moved slightly higher at the top of the range this week. Cream demand is steady. Condensed skim milk loads are available, and demand for condensed skim is somewhat stronger.

Thursday Midday Dairy Market Summary - Nonfat Dry Milk Jumps Again

OUTSIDE MARKETS SUMMARY:

CORN:	9 Lower
SOYBEANS:	2 Higher
SOYBEAN MEAL:	$0.50 Lower
LIVE CATTLE:	$4.02 Lower
DOW JONES:	21 Points Lower
NASDAQ:	197 Points Higher
CRUDE OIL:	$1.42 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 0.50 cents to close at $1.61 with seven loads traded. The barrel cheese price increased 1.50 cents to close at $1.5625 with one load traded. The dry whey price decreased 2.75 cents to close at 67.00 cents with one load traded. Class III futures are 6 cents lower to 8 cents higher. The butter price increased 2.50 cents to close at $1.4875 with 31 loads traded. Even with the activity today, 28 uncovered offers remained at the close of spot trading. So far this week, there have been 112 loads traded. The Grade A nonfat dry milk price jumped 6.00 cents to close at $1.17 with two loads traded. This moved the price to the highest level since June 15. Class IV futures reacted violently, with futures ranging from 31 -- 92 cents higher on good volume. Butter futures are 0.75 cent lower to 4.25 cents higher. Dry whey futures are 0.50 cents lower to 0.45 cents higher. Cheese futures are 0.40 cents lower to 1.40 cents higher. Nonfat dry milk futures are 2.20 -- 8.00 cents higher.

Thursday Morning Dairy Market Update - Traders Search for Market Support

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	4 to 8 higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Lower
Soybean Futures:	1 to 2 Higher
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	2 to 3 Higher

MILK:

The significant increase in the Grade A nonfat dry milk price on Wednesday resulted in Class IV futures being settled higher. However, trading activity was very light, with only two contract months traded throughout the day. Traders held to their bids and offers, unwilling to move them. Higher prices have been met with increased selling, with upside potential limited. The World Agricultural Supply and Demand report released on Wednesday does not provide much hope for higher milk prices the rest of this year and next year if the USDA's estimates come to fruition.

CHEESE:

Cheese prices have remained stable for two consecutive trading sessions. Buyers have been absent the past two days, giving the market a bearish tone. Supply and demand seem to be balanced at current prices. No significant price moves are expected today.

BUTTER:

The butter price remains in an overall downtrend. There is a substantial amount of butter available, with buyers remaining unaggressive. Demand is being met with supplies purchased for later demand without having to chase the market higher.