Fluid Milk and Cream - Western U.S. Report 32

No changes in milk production are reported this week for California. Spot milk load availability is tighter. Processors in the Central Valley are busy handling milk intakes at their production facilities. 

Farm level milk output in Arizona and New Mexico is lighter. Some production downtime in the area is reported, loosening spot milk load availability. 

Milk production in the Pacific Northwest is lighter. Some stakeholders report smoke from fires is negatively impacting milk output/dairy operations, while others indicate the fires are not near the cows. Manufacturers note milk supplies as tighter. 

Farm level milk production in the mountain states of Idaho, Utah, and Colorado is lighter. Smoke from fires in Oregon is negatively impacting cow comfort in Idaho for some dairy farmers. Colorado handlers note hotter overnight temperatures are negatively impacting cow comfort. Milk supplies are tighter in the mountain states. Class I demand is stronger, with some educational institutions starting soon. Class II, III, and IV demands are steady. 

Stakeholders describe cream supplies as balanced or tighter. Cream multiples moved higher this week. Cream demand is somewhat stronger. Condensed skim milk loads are available. Condensed skim milk demand is somewhat stronger.

Thursday Midday Dairy Market Summary - Spot Butter Shows Heavy Trading Activity

OUTSIDE MARKETS SUMMARY:

CORN:	3 Higher
SOYBEANS:	Unchanged
SOYBEAN MEAL:	$0.70 Higher
LIVE CATTLE:	$3.22 Lower
DOW JONES:	439 Points Lower
NASDAQ:	29 Points Lower
CRUDE OIL:	$1.99 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 1.50 cents to close at $1.5350 with ten loads traded. The barrel cheese price remained unchanged at $1.5475 with no loads traded. The dry whey price increased 0.75 cent to close at 69.50 cents with two loads traded. Class III futures are 6 cents lower to 17 cents higher. The butter price increased 6.75 cents to close at $1.5500 with 79 loads traded. Despite the large volume of butter traded, there were 69 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk decreased 3.50 cents to close at $1.5650 with eight loads traded. This took back yesterday's gain and then some. Class IV futures have not yet been traded. Butter futures are 3.75 -- 7.00 cents higher. Dry whey futures are unchanged to 0.25 cent lower. Cheese futures are 0.50 cent lower to 1.90 cents higher. Nonfat dry milk futures are 2.35 -- 3.55 cents lower. USDA will release the June Dairy Products report today. There will be no Dairy Revenue Protection prices released today due to the report.

Thursday Morning Dairy Market Update - Traders Remain Uncertain Over Market Strength

OPENING CALLS:

Class III Milk Futures:	2 to 5 Lower
Class IV Milk Futures:	5 to 10 Higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	1 to 2 Higher
Soybean Meal Futures:	$0.50 to $1 Higher
Wheat Futures:	2 to 3 Higher

MILK:

Hopes for a seasonal increase in milk prices do not seem to be taking place this year. Underlying cash prices are not reflecting any seasonal buying. Sufficient milk and dairy products keep buyers comfortable with no reason to step up to purchase more aggressively. Milk production is recovering from the recent hot weather, keeping bottling and manufacturing demand satisfied. Calf prices have declined with the weakness in cattle prices, but prices are expected to recover and not have a long-term impact on the market. USDA will release the June Dairy Products report Thursday. It will show the level of production of dairy products for the month. This report is not a market-mover. There will be no Dairy Revenue Protection prices released Thursday afternoon.

CHEESE:

The weakness in the block cheese price increases concern over the potential for prices this year. The strong price gain seen in July has had about half of it erased since it peaked on July 23. This is not a good sign for this time of year. Cheese production may slow as more milk moves to bottling, but the supply is not expected to be tight.

BUTTER:

The overall butter price is in a downtrend. It is uncertain whether seasonal buying is delayed or if buyers have sufficient supply already on hand, limiting their aggressiveness. The price will remain choppy. Retail demand has seen improvement while food service demand has been steady.