MILK:
Milk production remains stronger than last year but is declining seasonally as the summer progresses. Bottlers and manufacturers have had no difficulty finding milk for needs. In fact, discounts for spot milk still remain rather large in the Midwest for this time of year. There is no indication of tight supply anywhere, nor is there expected to be in the future unless something major takes place that could limit production. The only possibility would be substantially hot weather nationwide that would last long enough to impact overall milk production. There have been areas that have suffered through hot weather that has impacted production, but it has not been widespread or of a long duration in some areas for far. Thus, overall milk production has been able to stay above a year ago. The Global Forecasting System has indicated some very hot weather could move into the Plains, Dakotas and Minnesota next week that would impact production in that region. They have already seen some hot temperatures and dry weather.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.53 |
| 6 Month: | $17.94 |
| 9 Month: | $17.89 |
| 12 Month: | $17.86 |
CHEESE:
Cheese production remains active with many plants not needing to purchase extra spot milk due to the current availability of milk from regular suppliers or patrons. There continue to be some issues over trucking which are hampering movement of some product. This has been an ongoing problem for a period of time. Overall demand for cheese remains strong with the pizza industry leading the way.
BUTTER:
There are reports that some butter manufacturers are selling some cream rather than churning. Demand for butter from retail has slowed seasonally, but food service orders remain strong. Supply and demand seem to be fairly balanced, which may limit upside price potential.
OUTSIDE MARKETS SUMMARY:
September corn gained 17 cents, ending at $5.6825. August soybeans jumped 38.25 cents, closing at $14.53 with August soybean meal up $12.20, closing at $368.70 per ton. September wheat gained 20.50 cents, closing at $6.5425. August live cattle declined $0.50, ending at $121.25. August crude oil fell $2.12, closing at $73.13 per barrel. The DOW closed 44 points higher at 34,933 while the NASDAQ declined 33 points, closing at 14,645.
