MILK
Milk production is termed as steady with milk supplies readily available. Reports are that the previous period of hot weather did not significantly affect overall milk production. It was not long enough, and cows were able to remain somewhat comfortable depending on facilities. Once the hot weather passed, cows generally rebounded to production levels prior to the hot weather. These keep both bottling and manufacturing facilities busy and running near or at capacity. Bottling is a bit down as demand is somewhat flat to lower depending on the area. The Federal Order Class I price was announced at $17.42, down $0.87 from June and up $0.86 from July 2020. USDA will release the May Livestock Slaughter report Thursday, providing numbers for dairy cattle slaughter for the month. Even if slaughter is higher, it did not make any difference as the milk production report showed an overall increase of cow numbers.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.91 |
| 6 Month: | $17.49 |
| 9 Month: | $17.60 |
| 12 Month: | $17.64 |
CHEESE
Cheese plants in the Midwest report that discounts on spot milk are running greater than last week. Plants had hoped that the hot weather would have reduced milk receipts, but that has not been the case. This keeps manufacturing schedules quite active and keeps sufficient cheese supply for demand. Buyers see no need to be aggressive. The bounce of prices Wednesday may be just the result of orders that needed to be filled.
BUTTER
Butter output has been steady as cream supply has been sufficient. There is some indication that cream supplies might be tightening in some areas, which could become more widespread as time moves forward. Food service orders are steady as the pipeline is being maintained. However, retail orders are slower. The decline of price below the recent trading range is not a good sign as supply might be building a bit more than desired.
OUTSIDE MARKETS SUMMARY
July corn gained 4.50 cents, closing at $6.6425. July soybeans declined 9.50 cents, ending at $13.85, with July soybean meal down $9.10 per ton, closing at $354.20. July wheat gained 10.25 cents, ending at $6.6125. June live cattle declined $0.60, ending at $122.55. July crude oil gained $0.23, closing at $73.08 per barrel. The Dow declined 71 points, closing at 33,874, while the NASDAQ gained 18 points, closing at 14,272.
