MILK
Futures showed some incredible gains with gains far exceeding the movement of underlying cash. Double-digit gains were seen in Class III futures through March 2024 contracts. The only exception was front-month August with a decline of a penny and the November 2023 contract with a decline of 7 cents. The January 2024 contract closed 68 cents higher. Class IV futures outpaced Class III posting gains of as much as $1.00 as seen in the December contract. Strong gains were seen through the August 2023 contract. South Dairy Trade prices and volumes were released today. Argentina had 10,565.31 tons moving through ports to 24 destinations at an average price of $4,480.04 per ton during July 1 through July 15. Whole milk powder declined 1.7% from the previous report to $4,363.20 per ton or $1.98 per pound. Skim milk powder gained 0.4% to $4,047.08 per ton or $1.84 per pound. Semi-hard cheese increased 1.2% to $4,796.55 per ton or $2.18 per pound. Hard cheese gained 6.6% to $6,365.93 per ton or $2.89 per pound. Butter gained 3.2% to $5,487.02 per ton or $2.49 per pound. Buttermilk declined 4.2% to $3,150.00 or $1.43 per pound. Uruguay had 10,439.32 tons going to 24 destinations at an average price of $4,235.58 per ton during the period from August 1 through August 15. Whole milk powder declined 2.9% from the previous report to $4,055.26 per ton or $1.64 per pound. Skim milk powder gained 8.7% to $4,273.93 per ton or $1.94 per pound. Semi-hard cheese increased 5.0% to $4,810.37 per ton or $2.18 per pound. Hard cheese declined 9.1% to $5,929.32 per ton or $2.69 per pound. Butter declined 2.4% to $5,745.98 per ton or $2.61 per pound. Buttermilk declined 5.7%to $4,537.32 per ton or $2.06 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $20.31 |
| 6 Month: | $20.76 |
| 9 Month: | $20.62 |
| 12 Month: | $20.50 |
CHEESE
The weakness of cheese did not phase the bullishness of trading activity today. It was one of those "scratch your head" days as futures moved substantially higher while underlying cash declined. There was no other fundamental news that was responsible for the large price gains. Hopefully, this is an indication of cash strength the rest of the week.
BUTTER
Strong demand for butter is keeping price elevated. There was good trading activity in the spot market as buyers remained aggressive at higher prices. Buyers seem to be actively looking to increase ownership for later demand.
OUTSIDE MARKETS SUMMARY
September corn jumped 26.50 cents closing at $6.60. September soybeans jumped 39.75 cents closing at $15.6675 with September soybean meal up $8.00 per ton closing at $468.50. September wheat gained 12.25 cents ending at $7.8275. August live cattle gained $0.40 ending at $141.62. September crude oil jumped $3.38 ending at $93.74 per barrel. The DOW declined 154 points ending at 32,910 while the NASDAQ was unchanged at 12,381.
