MILK:
Milk futures closed lower for the week as bearishness gripped the market due to weakness of underlying cash. On top of that was the added bearishness of traders as price strength is being met with pessimism. The higher cheese prices Friday should have moved Class III futures higher than what they were, but for the fact that traders are not convinced of an extended duration of price strength. The spot market will require extra effort to change the current attitude of traders. Corn futures had a negative week, closing lower than they were at the end of last week. That may also have some underlying influence on the market. The milk production report showed cow numbers in the month of June declined by 1,000 head from the previous month. The June Livestock Slaughter report showed slaughter increasing 14,100 head from May totaling 237,500 head. There were a lot of replacements moving into the herds, taking the spots of those that were culled. June slaughter was 10,500 head more than June 2020.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.66 |
| 6 Month: | $17.22 |
| 9 Month: | $17.31 |
| 12 Month: | $17.36 |
CHEESE:
At least cheese prices did not close as bad as it could have been. Blocks posted stronger prices the past two days while barrels moved higher Friday. The availability of milk for manufacturing continues to keep spot milk prices lower than usual for this time of year. Milk production continues to exceed the previous year and is expected to continue to do so for the rest of the year. For the week, blocks declined 3 cents with only one load traded. Barrels declined 3.75 cents with 35 loads traded. A report earlier in the week suggested barrel supply was tightening, but you would not think that is the case with this much activity. It indicates barrel supply is adequate to slightly heavy. Dry whey remained unchanged for the week with three loads traded.
BUTTER:
Price tried to hold for the week, but slipped Thursday. The Cold Storage report indicated a limited increase of inventory in June, but inventory being 14% above a year ago does not make for a bullish market. Generally, inventory should decrease during the second half of the year. For the week, butter gained 3.50 cents with 20 loads traded. Grade A nonfat dry milk was unchanged with 10 loads traded.
OUTSIDE MARKETS SUMMARY:
September corn fell 17.25 cents, closing at $5.4725. August soybeans fell 15.25 cents, closing at $14.01 with August soybean meal down $9.60 per ton, closing at $353.60 per ton. September wheat declined 8.25 cents, closing at $6.84. August live cattle gained $0.70, ending at $121.50. September crude oil increased $0.16, closing at $72.07 per barrel. The DOW gained 238 points, closing at 35,062 while the NASDAQ gained 152 points, closing at 14,837.
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