MILK:
Class III milk futures closed mixed despite cheese prices increasing. Traders were just not convinced cheese prices were going to trend higher. More strength will be needed before traders may become more aggressive. There are reports that milk production is slowing due to the hot weather. But at the present time, milk availability in the Central Region of the country is heavy. Milk output has slowed, but so has fluid milk consumption, which is leaving sufficient supply readily available for both bottling and manufacturing. USDA increased their estimate this year for milk production on the World Agricultural Supply and Demand Estimates (WASDE) report by 600 million pounds from their May estimate and are now anticipating production at 228.5 billion pounds. They also raised the production estimate for next year to 231.1 billion pounds, an increase of 800 million pounds. That is interesting due to the potential for higher grain prices if weather remains on the dry side. However, USDA did not reduce estimated corn or soybean production from their May estimate. Corn was left unchanged at 14.990 billion bushels (bb) and soybeans at 4.405 bb. It is still too early to tell what will unfold during the growing season and USDA remained conservative in their estimates. The average Class III milk price this year was reduced $0.25 to $17.45. The projected price for next year was raised $0.30 to an average of $17.15. The average Class IV price was raised $0.10 this year to $15.85 with the average raised next year to $15.95, up $0.25. The all-milk price was reduced this year by $0.10 at $18.85 and raised next year by $0.25 to an average of $18.75.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.72 |
| 6 Month: | $18.27 |
| 9 Month: | $18.22 |
| 12 Month: | $18.12 |
CHEESE:
The average cheese price this year was reduced $0.0350 cents to $1.7050 and left unchanged next year from the May estimate at $1.7050. Dry whey price was raised $0.0150 to $0.59 for this year and raised $0.0350 cents to an average of $0.51 for 2022. If these were to be realized, it would not be much better than this year for cheese and lower for dry whey. These are just estimates and will change each month as the year progresses.
BUTTER:
USDA estimates the average butter price this year at $1.7150, up from $1.71 last month. They raised the price estimate next year to $1.7950, up from $1.79 in May. The nonfat dry milk prices was raised a penny this year to $1.25 and raised 2.50 cents next year to average $1.22.
OUTSIDE MARKETS SUMMARY:
July corn gained 8.25 cents, closing at $6.99. July soybeans fell 18.50 cents, closing at $15.44 with July soybean meal down $4.80 per ton, closing at $381.60. July wheat gained 1.50 cents, ending at $6.8375. June live cattle gained $0.17, ending at $117.57. July crude oil increased $0.33, settling at $70.29 per barrel. The DOW increased 19 points, closing at 34,466 while the NASDAQ gained 109, closing at 14,022.
