MILK
Class III milk futures took a hit today, but contracts held some of the gains for the week. the action today will renew some of the bearishness prevalent in the market. It took longer for cheese price to show some weakness than what had been over the past few weeks. Once buyers were not as aggressive, sellers swooped in and wanted to get the best price they could for the cheese they had to sell. USDA released the World Agricultural Supply and Demand report today showing an increase in estimated milk production. Milk production was raised this year by 800 million pounds from July to an estimated 226.8 billion pounds. Milk production for 2023 was raised 900 million pounds from July to the current estimate of 229.3 billion pounds. The estimate was likely raised due to strong milk production per cow and the rise of cow numbers in June. They are anticipating the trend to continue. As a result, milk prices were reduced. The average Class III price was reduced $0.80 to $21.60. Class III price in 2023 was reduced $1.15 to an average of $19.70. Class IV price this year was lowered to an average price of $23.95, down $0.80 while the average price next year was reduced $1.95 to $20.35 from the July estimates. The All-milk price this year was reduced to $25.20, down $0.95 while the average price next year was reduced to $22.50, down $1.65 from the June estimate.
AVERAGE CLASS III PRICES
| 3 Month: | $20.10 |
| 6 Month: | $20.33 |
| 9 Month: | $20.17 |
| 12 Month: | $20.01 |
CHEESE
For the week, block increased 6 cents with 4 loads traded. Barrel increased 9.25 cents with 14 loads traded. Dry whey increased a penny with 2 loads traded. Class III futures should not have fallen back as much as they had today based on the advances of cheese prices this week. USDA reduced their estimate for cheese price on the World Agricultural Supply and Demand report today. The average cheese price this year was reduced 11 cents to $21.0750 compared to the July estimate. The average of next year was reduced 9.50 cents to $1.9750.
BUTTER
For the week, butter declined 7.50 cents with 34 loads traded. Buyers and sellers are comfortable doing business in the current price range continuing to trade a large volume of butter. Grade A nonfat dry milk increased 1.50 cents for the week with 25 loads traded. USDA raised their estimate for butter price slightly to an average of $2.7850 for this year, an increase of 0.50 cents. The average butter price for next year was reduced 6.50 cents to $2.3750. Nonfat price was reduced 9 cents this year to an average of $1.6650 while the estimate for next year was reduced 19.50 cents to an average of $1.45.
OUTSIDE MARKETS SUMMARY
September corn gained 10.50 cents closing at $6.3975. September soybeans gained 14.75 cents closing at $15.35 with September soybean meal up $8.20 per ton closing at $464.70. September wheat declined 4.75 cents closing at $8.06. September crude oil fell $2.25 ending at $92.09 per barrel. The DOW jumped 424 points ending at 33,761 while the NASDAQ gained 267 points closing at 13,047.
