MILK:
The surprise is that both Class III and Class IV futures posted double-digit gains in all contracts through July 2022. Previously, stronger gains had been confined to nearby months. Maybe this is a change in thinking. However, we need to be careful that we do not read too much into this. USDA released the July Agricultural Prices report providing average commodity prices for the month. Prices on this report are used to calculate the income over feed prices for the Dairy Margin Coverage program (DMC). The average corn price was $6.12, up $0.12 from June. The Central Illinois soybean meal price was $365.23 per ton, down $12.95 per ton from June. The alfalfa blend price was $216.50 per ton, up $2.00 from June. This blend price is derived from the alfalfa hay price of $201 per ton and the premium/supreme price of $232.00 per ton. This results in an income over feed price of $5.69 and the lowest income over feed price since May 2020. Those who chose the $9.50 DMC price level and have not used up all of their milk allotment will receive a payment of $3.81 per cwt. A year ago, the average corn price was $3.21 per bushel. Alfalfa hay was $172 per ton. Premium/supreme hay was $192 per ton. Soybean meal was $291.25 per ton. The all-milk price was $20.60.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.96 |
| 6 Month: | $17.16 |
| 9 Month: | $17.28 |
| 12 Month: | $17.37 |
CHEESE:
A steady block price and a slightly higher barrel price does not indicate the market has found support. Prices are going to continue to chop around as buyers and sellers do business. Time of year would suggest a floor should develop under prices, however continued interest in selling cheese is keeping buyers complacent.
BUTTER:
Price posted a nice gain as buyers turned more aggressive. This has moved price to the highest level it has been since June 29. It certainly does look as if butter is finally trending higher. It will have a long way to go to get back up to the level it had been in early April. Price has been slowly trending higher and the increase Tuesday may bring more buyers in from the sidelines as they will want to purchase supply at these lower prices.
OUTSIDE MARKETS SUMMARY:
September corn declined 6.25 cents, closing at $5.34. September soybeans declined 6 cents, closing at $12.9875 with September soybean meal down $1.20 per ton at $346.40. September wheat declined 2 cents, closing at $7.0675. October live cattle declined $1.42, ending at $126.90. October crude oil lost $0.71, closing at $68.50 per barrel. The DOW slipped 39 points, closing at 35,361 while the NASDAQ declined 7 points, closing at 15,259.
