MILK
Bottling plants have slowed production a bit after the July Fourth holiday. Heavy volumes of milk continue to move to manufacturing with there being a surprise of the volume of milk that continues to be available. Milk production is strong with limited impact seen from hot weather. Corn prices are struggling due to wetter weather in some areas that have been very dry. December corn has fallen 58 cents per bushel in three days. Feed prices will remain more expensive, but they look to be more manageable if they remain at current levels. There is no indication of heavier culling taking place or the slowing of milk output. Darigold announced that it will build a new processing facility in Pasco, Washington. The plant will process protein powder and butter and is the largest private industrial development to take place in the Port of Pasco. About half of the facility's output will be exported to Pacific Rim countries. On the other side of the country, Prairie Gold is closing eight plants in Alabama and four in Georgia with one reason being that the fluid milk market is very competitive and these plants are not able to compete effectively and efficiently in the market. The industry is constantly changing.
AVERAGE CLASS III PRICES
| 3 Month: | $17.01 |
| 6 Month: | $17.48 |
| 9 Month: | $17.52 |
| 12 Month: | $17.57 |
CHEESE
Some reports have surfaced that cheese availability has tightened in recent weeks as demand has improved. This may not be the case in the entire country and may be variety specific, but that may be a reason why spot cheese prices have increased recently. Maybe this price strength is for real and not just a flash in the pan as it had been generally since late last year. Price increases have previously been short-lived. Maybe a longer-term trend is developing.
BUTTER
Butter is somewhat stable with demand somewhat flat. Cream supply is stronger than usual, leaving plants with plentiful volumes such that they do not need to purchase extra supply. Plants are not selling cream but are churning it to meet demand and build some inventory. For now, price is holding as the market is somewhat balanced.
OUTSIDE MARKETS SUMMARY
July corn declined 3.50 cents, ending at $6.5250. July soybeans jumped 22.75, ending at $13.8650, with July soybean meal up $2.20, closing at $357.20 per ton. July wheat declined 5.25 cents, closing at $6.1475. August live cattle fell $1.80, closing at $120.60. August crude oil fell $1.17, closing at $72.20 per barrel. The Dow gained 104 points, ending at 34,682, while the NASDAQ gained 1 point, closing at 14,665.
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