MILK
Milk futures posted strong gains today both preceding and following spot prices higher. It was about time milk futures showed some strength after a period of nearly steady losses. It is unclear whether a bottom could have been made, but it is encouraging to see that futures have been in a sideways pattern for about 1 1/2 weeks. The milk production report last week was negative to the market due to increasing milk production and increasing cow numbers. However, this was offset by the decrease of cheese inventory for the same month. It may take some time for traders to be confident the market could move higher for an extended period of time. Dairy cattle slaughter for the month of June showed an increase of 7,800 head from May, but a decrease of 2,500 from June 2021.
AVERAGE CLASS III PRICES
| 3 Month: | $21.26 |
| 6 Month: | $20.98 |
| 9 Month: | $20.48 |
| 12 Month: | $20.11 |
CHEESE
Buyers turned a little more aggressive in cheese today. The indication that demand may be holding better than anticipated may increase the desire for end users to step back up and take advantage of the current lower prices. However, they will remain very cautious as the market will need to prove itself. Demand will need to remain strong enough to continue to reduce inventory even if milk production continues to improve.
BUTTER
Butter price continues to avoid the $2.90 level with buyers remaining interested in purchasing when price nears that level. Buying activity has been brisk on the spot market. Lower butter production has been keeping supply and demand balanced and inventory from building. Buyers and sellers are comfortable doing business at the current price. Nonfat dry milk does not share the same sentiment with buyers finding little reason to be aggressive.
OUTSIDE MARKETS SUMMARY
September corn jumped 15.75 cents closing at $5.80. August soybeans jumped 38.50 cents closing at $14.73 with August soybean meal up $16.00 per ton closing at $447.50. September wheat gained 11 cents ending at $770. August live cattle gained $0.37 ending at $137.75. September crude oil gained $2.00 closing at $96.70 per barrel. The DOW gained 91 points ending at 31,990 while the NASDAQ declined 51 points to 11,783.
