MILK
Milk futures closed very strong, triggered by cheese, dry whey and nonfat dry milk. November moved nearly limit up, matching the contract high set on May 12. Prices did not hold at the highs but still held very strong into the close. November Class III closed solidly above $19. December did reach $19.05 Thursday but did not hold there. Class IV futures were strong with contracts through September 2022 now above $18. Milk production is holding well and is improving in many areas as weather is conducive to cow comfort and feed quality is good. There is sufficient milk for all areas of bottling and manufacturing. Dairy exports continue to do well. The value of exports in August reached $689.5 million, up 25.9% from a year ago. Total exports are up 12.6% from a year ago, totaling 198,032 metric tons. This is very good, as it builds on last year with last year building on 2019, which indicates significant steady export growth.
AVERAGE CLASS III PRICES
| 3 Month: | $18.71 |
| 6 Month: | $18.39 |
| 9 Month: | $18.29 |
| 12 Month: | $18.27 |
CHEESE
Exports of cheese in August totaled 36,572 metric tons, an increase of 18.1% over the previous year. Year-to-date exports are 7.1% above the same period last year. Dry whey exports totaled 48,2856 metric tons, up 9.2% from July with year-to-date exports up 20.9%. For much of the year, the growth of exports did not seem to have much impact on milk prices, but that may have changed now that trading optimism has turned bullish.
BUTTER
Butter exports in August jumped 150.5% from a year ago, totaling 4,878 metric tons. Year-to-date exports are up 125.1%, showing phenomenal growth. Skim milk powder/nonfat dry milk exports totaled 78,908 metric tons, up 15.4% from the previous year. Year-to-date exports are up 12.5%. Whole milk powder totaled 2,747 metric tons, up 27.3% from a year ago with year-to-date exports up 9.5%.
OUTSIDE MARKETS SUMMARY
December corn increased 4.50 cents, closing at $5.1675. November soybeans gained 11 cents, closing at $12.0625, with December soybean meal up $2.40 per ton, closing at $314.10. December wheat gained 6 cents, closing at $7.2475. October live cattle gained $0.97, ending at $125.75. November crude oil gained $0.87, closing at $81.31 per barrel. The Dow jumped 535 points, closing at 34,913, while the NASDAQ jumped 252 points, closing at 14,823.
