MILK
Both Class III and Class IV futures increased nicely today and held in positive territory even after the milk production and inventory reports. July milk production in the top 24 states increased 0.3% over July 2021. Production per cow was up 21 pounds averaging 2,055 pounds. Cow numbers increased 1,000 head from June. Milk production in the U.S. increased 0.2%. Milk production per cow was up 19 pounds to 2,033 with cow numbers in the country up 1,000 head from June. This is not a friendly report as milk production increased even though July was a very hot month. Farms are doing an excellent job and keeping cows cool and comfortable and appetites strong. After revisions were made to previous months, this is the first month this year during which milk production was higher than the previous year. There were 13 of the top 24 states which showed production declines. Florida showed the largest percentage decline of milk production with a loss of 11.4% followed by New Mexico with a decline of 8.1 percent. The largest gain took place in South Dakota with an increase of 13.1% followed by Georgia with a gain of 12.3 percent.
AVERAGE CLASS III PRICES
| 3 Month: | $20.05 |
| 6 Month: | $20.32 |
| 9 Month: | $20.18 |
| 12 Month: | $20.05 |
CHEESE
The July Cold Storage report was bearish as American, other cheese and total cheese stocks increased from June. Inventory typically declines during this time of year. American cheese inventory increased 13.1 million pounds from June reaching 859.9 million pounds. Swiss cheese inventory declined 2.0 million pounds totaling 22.6 million pounds. Other cheese inventory increased 4.5 million pounds totaling 640.4 million pounds. Total cheese inventory reached 1.523 billion pounds, up 16.6 million pounds and 5.0% higher than a year ago.
BUTTER
July butter stocks totaled 314.4 million pounds, down 16.5 million pounds or 5% below a year ago. Inventory remains 21% below a year ago. This is friendly to butter and Class IV futures and may keep cash price above $3.00.
OUTSIDE MARKETS SUMMARY
September corn gained 7.50 cents closing at $6.3350. September soybeans jumped 38.25 cents ending at $15.27 with September soybean meal up $11.80 per ton closing at $460.50. September wheat gained 17.25 cents ending at $7.7050. August live cattle declined $0.37 ending at $141.22. September crude oil declined $0.54 ending at $90.23. The DOW fell 643 points closing at 33,064 while the NASDAQ fell 324 points closing at 12,382.
