MILK
Milk production has been declining seasonally, while demand for fluid milk to supply school systems has been increasing. Many schools are already in session with the remaining schools to be in session over the next week or so. Demand for fluid milk has been pulling quite a bit away from manufacturing. However, there is still plenty of milk available to all areas of the industry. Dairy farms and milk plants in the East and Northeast have been dealing with the impact of Tropical Storm Henri. There has been power outages and damaged roads. There has been no indication of any large volumes of lost milk at this time. Dairy cattle slaughter for the month of July totaled 247,900 head, according to the monthly slaughter report. This was 10,400 head less than the amount slaughtered in June and 14,200 head less than July 2020. Horizon Organic is discontinuing the purchase of milk from 28 dairy farmers in Vermont and New Hampshire beginning September 2022. Their parent company, Danone, informed the Northeast Organic Dairy Producers Alliance that they have adequate supply in the Midwest and West and can purchase milk cheaper from large dairy operations.
AVERAGE CLASS III PRICES
| 3 Month: | $16.89 |
| 6 Month: | $17.12 |
| 9 Month: | $17.21 |
| 12 Month: | $17.28 |
CHEESE
Spot milk availability has tightened significantly over the past few weeks. In fact, there is no discounted milk anywhere. Some cheese plants indicate they are turning down orders due to the increase in demand, less spot milk available and lower milk receipts from dairy farms. However, this has not translated in stronger prices as of yet. There remain sufficient cheese supplies available for current demand.
BUTTER
Butter production has been slowing as some plants have been selling cream rather than churning to keep supply in line with demand. Price is trying to work higher, but it may be difficult to see a consistent gain. There are reports of delays in butter deliveries to the ongoing trucking issues that seem to be prevalent in many industries. Demand should slowly improve as the calendar moves toward the end of the year.
OUTSIDE MARKETS SUMMARY
September corn gained 6.75 cents, closing at $5.5125. September soybeans gained 9 cents, closing at $13.46, with September soybean meal down $2.60 per ton, closing at $352.30. September wheat declined 6.75 cents, closing at $7.1125. August live cattle fell $1.37, closing at $124.42. October crude oil gained $0.82, closing at $68.36 per barrel. The Dow gained 39 points, closing at 35,406, while the NASDAQ gained 22 points, closing at 15,042.
