MILK
Hot weather seems to be behind us in many areas allowing for greater cow comfort. However, it will take some time for cows to rebound in milk production with many having to move into their next lactation before moving back to full potential. The July Milk Production report will not be released until next week Monday, but milk production is expected to show a decline from a year ago due to the extremely hot weather experienced in many areas. Even with the hot weather, there has been sufficient milk available for bottling and manufacturing. Feed prices are expected to remain high but there is a strong possibility the highs are in for the year unless there is a shorter crop than expected or there is a surge in demand from other countries. The severe drought in the E.U. opens the potential for them to become a larger importer of grain this year than China. Without the E.U. exporting grain, it will throw another dynamic into the market that had not been expected. The good/excellent condition of the corn crop deteriorated 1% to the current level of 57%. The good/excellent condition of soybeans is at 58%, a decline of 1%.
AVERAGE CLASS III PRICES
| 3 Month: | $20.43 |
| 6 Month: | $20.73 |
| 9 Month: | $20.50 |
| 12 Month: | $20.31 |
CHEESE
The strength of cheese was positive as it pushed blocks higher and eliminated the loss of barrels on Friday and then some. Buyers may be turning their attention to Fall and end-of-the-year demand rather than on the level of inventory. Stronger demand for fresh cheese is what will drive the market no matter what level of supply is on hand. However, total supply will always dictate the strength of price in the end.
BUTTER
Price action today solidifies the idea that buyers and sellers remain comfortable in the price range of $2.90 to $3.00. Churning activity leaves sufficient supply available but not an overabundance. Inventory is expected to remain below year-earlier levels through the end of the year.
OUTSIDE MARKETS SUMMARY
September corn declined 13 cents closing at $6.2675. September soybeans fell 41 cents closing at $14.94 with September soybean meal down $12.50 cents closing at $452.20. September wheat declined 5.25 cents closing at $8.0075. August live cattle declined $0.47 ending at $139.75. September crude oil fell $2.68 per barrel closing at $89.41. The DOW increased 151 points closing at 33,912 while the NASDAQ gained 81 points closing at 13,128.
