MILK:
Even though the recent bout of heat and humidity in many areas has had an impact on milk output, production levels remain higher than a year. There have been advancements made in cooling systems that are able to minimize the impact of hot weather on cow comfort. The missing aspect is that demand needs to improve substantially to utilize higher milk supply and tighten availability. Spot milk prices have increased substantially with no milk available at a discount anymore. With sufficient milk available to the market, buyers remain complacent and continue to purchase dairy products on the spot market on an as-needed basis. Class III milk futures began the week on a positive note with increasing underlying cash only to top out on Tuesday and then fall back through the end of the week. Traders will be very cautious early next week.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.43 |
| 6 Month: | $16.79 |
| 9 Month: | $16.96 |
| 12 Month: | $17.08 |
CHEESE:
For the week, blocks increased 5.75 cents with five loads traded. Barrels decreased 7.50 cents with nine loads traded. Dry whey price decreased 3 cents with only one load traded. Barrels have given back about half of what they had gained since the beginning of the month. General Mills is possibly developing an animal-free cheese brand called Renegade Creamery. The cheese would use proteins similar to dairy proteins produced without a cow. There is no animal-free cheese currently on the market, but it probably will be available over time as companies continue to explore ways to produce milk and other dairy product substitutes.
BUTTER:
For the week, butter increased 4.50 cents with 19 loads traded. Grade A nonfat dry milk price gained 4.25 cents with four loads traded. Overall, butter price is trending higher, but certainly not by leaps and bounds. Both retail and food service industry demand is improving and should continue to do so as the second half of the year progresses.
OUTSIDE MARKETS SUMMARY:
September corn gained 5.25 cents, ending at $5.58. September soybeans declined 8.25 cents, closing at $13.5925 with September soybean meal down $2.30 per ton, closing at $354.20. September wheat declined 6.75 cents, ending at $7.1850. August live cattle declined $1.27, closing at $122.00. October crude oil increased $1.32, closing at $68.74 per barrel. The DOW gained 242 points, closing at 35,455 while the NASDAQ gained 184 points, closing at 15,130.
