MILK
There is a mixed bag of news across the country as far as milk output is concerned. The Central and Northeast regions indicate milk production is holding well but slowly declining seasonally. Other areas have seen declines already due to hot weather. Component values are slipping but many report values are a bit better this year than last year at this time. There are increasing problems being faced with the lack of employees and truck drivers. Bottling and manufacturing are being done but not to the speed and efficiency as they should be. Delays are being seen as it takes longer to source transportation. Farms are in a similar position finding it difficult to find employees to keep the farm running smoothly. One would have thought this would have become better by now, but it is getting worse. Milk futures made a nice rebound today with Class III futures outpacing Class IV but not by much. The market was oversold and ready for a bounce. However, further support needs to surface from underlying cash, or the rebound will be short-lived.
AVERAGE CLASS III PRICES
| 3 Month: | $22.23 |
| 6 Month: | $22.26 |
| 9 Month: | $21.76 |
| 12 Month: | $21.30 |
CHEESE
The Western region of the country indicates cheese demand is steady to lower from both retail and food service outlets. Consumers are struggling and adjusting to inflation which is having an impact on demand domestically. Export demand is holding well which is limiting the amount of cheese that has been building in inventory. Having said that, inventory for cheese is at high levels which is causing some uncertainty over product movement as the year progresses. Dry whey price has slipped with end-users having sufficient on hand for the near term.
BUTTER
Buyers and sellers are content with the current price level. Buyers remain active with sellers able to sell at a good price. However, there is some thought surfacing that butter may not be able to hold this lofty level due to the slowing of demand. There is already a good supply of butter already on hand for the third quarter and into the fourth quarter.
OUTSIDE MARKETS SUMMARY
July corn gained 9.25 cents closing at $6.09. July soybeans gained 11 cents closing at $15.9125 with July soybean meal up $7.40 closing at $470.00 per ton. July wheat jumped 32.25 cents ending at $18.2450. August live cattle slipped $0.10 closing at $139.85. August crude oil jumped $4.20 ending at $102.73 per barrel. The DOW gained 347 points closing at 31,385 while the NASDAQ gained 259 points closing at 11,62
