MILK:
Class III milk futures were able to close with double-digit gains in some contracts. This certainly was a welcomed sight after the recent weakness. Milk production in the top 24 states in June was up 3.2% from June 2020 according to the report released by USDA Thursday. Milk output totaled 18.1 billion pounds. Milk production per cow averaged 2,011 pounds which was 27 pounds more than a year ago. Cow numbers totaled 9.0 million head, down 1,000 head from May, but up 161,000 head from a year ago. Total milk production in the country increased 2.9% from June 2020, reaching 18.955 billion pounds. Production per cow increase 26 pounds at 1,994 pounds. Cow numbers declined 1,000 head to 9.508 million which was 153,000 more than a year ago. Second quarter milk production was 3.7% above the same period last year.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.59 |
| 6 Month: | $17.16 |
| 9 Month: | $17.27 |
| 12 Month: | $17.33 |
CHEESE:
American cheese inventory took a surprising dip in June with a decline of 18.3 million pounds to a total of 809.4 billion pounds. It is not unusual for inventory to decline from May to June as it has decreased about as much as it has increased over the years. It was a bit surprising inventory was lower based on what reports indicated during June. Inventory still remained 2% higher than the previous year. Swiss cheese stocks increased 655,000 pounds, totaling 22.5 million pounds. This is 6% below a year ago. Other cheese stocks declined 5.5 million pounds from May totaling 603 million pound and 1% above a year ago. This put total cheese stocks at 1.435 billion pounds, down 23.1 million pounds from May, but 1% higher than a year ago.
BUTTER:
June butter inventory grew 2.6 million pounds, totaling 414.5 billion pounds. This was a minor increase which should be positive to the market, indicating continued strong demand. However, the bearish aspect was that stocks are 14% above June 2020. This may limit price potential unless demand increased significantly and supply declines.
OUTSIDE MARKETS SUMMARY:
September corn declined 7.25 cents, closing at $5.6450. August soybeans fell 23 cents, closing at $14.16 with August soybean meal down $6.60 per ton, closing at $363.20. September wheat fell 18.50 cents, closing at $6.9225. August live cattle gained $0.75, closing at $120.80. September crude oil jumped $1.61, closing at $71.91 per barrel. The DOW increased 25 points while the NASDAQ gained 53 points.
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