MILK
Milk production has been decreasing in most areas of the country as bouts of hot weather continue to impact cow comfort. Another round of hot weather is forecast to be prevalent next week in many areas impacting milk output yet again. Overall, milk supply is available for both bottling and manufacturing demand. In the next few weeks, more milk will be moving to the Southeast as schools prepare to open again and milk is shipped in to meet the demand for bottling. Cheese production is steady with most plants having sufficient supply of milk available. Class III milk futures showed significant losses today as lower cheese prices increased selling. Class IV futures were higher due to butter showing another gain offsetting the decline of nonfat dry milk. Soybean meal prices surged higher again for the third consecutive day with the September price moving $46.70 per ton so far this week. This will have a large impact of feed price if a farm has been purchasing on an as-needed basis.
AVERAGE CLASS III PRICES
| 3 Month: | $21.17 |
| 6 Month: | $20.95 |
| 9 Month: | $20.50 |
| 12 Month: | $20.17 |
CHEESE
Cheese production is steady in most cases with sufficient milk supply available. There have not been reports of further slowing of demand recently which may indicate the market may have moved to being somewhat balanced. It is difficult to say just how much demand will improve as the calendar moves closer to schools opening and buyer interest increases seasonally as preparation is made for holiday demand. There is uncertainty over the impact on the demand due to the interest rate increase of three-quarters of a percent today.
BUTTER
Butter production is mixed but somewhat lower than usual for this time of year. Production is generally slower during this time but there has been a further impact due to the lack of employees at many plants. Reduced demand keeps supply readily available. Price is expected to remain in a range for the foreseeable future. Buyers and sellers remain active in the spot market.
OUTSIDE MARKETS SUMMARY
September corn gained 3.25 cents closing at $6.0025. August soybeans jumped 46 cents closing at $15.7875 with August soybean meal up $16.50 per ton closing at $488.90. September wheat declined 13.50 cents closing at $7.9025. August live cattle slipped $0.07 closing at $136.80. September crude oil gained 228 points closing at $97.26. The DOW jumped 436 points closing at 32,198 while the NASDAQ jumped 470 points ending at 12,032
