MILK
Overall milk production is declining but continues to remain higher than a year ago. In fact, some farms report that even through the hot and humid weather this summer, cows are milking better than they had been prior to summer. Protein levels have been holding, but butterfat has been depressed. Butterfat is generally affected during the summer. Demand for Class I milk is increasing as orders are being placed for milk to begin filling the school pipeline. Spot milk still is running at a discount, but those discounts are dwindling. The anticipation is that spot milk will be moving at or slightly above class prices in the near future as greater volumes of milk move to deficit areas to supply school pipelines. That may provide some hope for higher milk prices over time. Buyers of dairy products may begin to step up more aggressively if they see lighter volumes of milk available to the market, especially for manufacturing.
AVERAGE CLASS III PRICES
| 3 Month: | $16.46 |
| 6 Month: | $16.95 |
| 9 Month: | $17.08 |
| 12 Month: | $17.17 |
CHEESE
The increase of dry whey price on the spot market was the largest recorded since daily spot trading for dry whey began in March of 2018 and the large movement since January 2013 where we have tracked weekly prices. Maybe this will be the indicator of a change in trend. However, traders will be very cautious as price increases since the beginning of the year have been met with aggressive selling. Cheese prices provide no indication of moving higher anytime soon.
BUTTER
Buyers were looking for butter again Thursday with bids having to be raised in order to obtain product. Price is expected to remain choppy as buyers and sellers accomplish business. Sellers take advantage of any price increase while buyers take advantage of lower prices. Sufficient cream supply remains, keeping churns active and demand satisfied.
OUTSIDE MARKETS SUMMARY
September corn gained 10 cents, closing at $5.5575. August soybeans slipped a penny, closing at $14.0250, with August soybean meal up $3.80 per ton, closing at $356.90. September wheat declined 4.50 cents, closing at $7.1275. August live cattle fell $1.47, ending at $122.57. September crude oil gained $0.94, closing at $69.09 per barrel. The Dow gained 272 points, ending at 35,064, while the NASDAQ gained 115 points, closing at 14,895.
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