MILK
It was nice to see some strength of milk futures today, but one cannot hold their breath anticipating continued gains. There is limited reason for price to turn a corner to any great extent at this point as supply is available for demand. The turning of cheese prices higher could be accomplished if buyers would look ahead and purchase more aggressively for packagers and re-cutters for holiday offerings and to stock up on supply. It is uncertain when this will take place or if it will take place. Seasonally demand should increase but this year has been anything but seasonal. South Dairy Trade results were released today. There were 5,491.57 tons moved through port in Uruguay during the period of July 16 through July 31 to 23 destinations at an average price of $3,534.28 per ton. Whole milk powder price increased 3.0% to $1,167.66 per ton or $1.89 per pound. Skim milk powder declined 5.4% to $3,932.12 per ton or $1.79 per pound. Semi-hard cheese gained 8.0% to $6,519.70 per ton or $2.96 per pound. Butter gained 3.3% to $5,886.32 per ton or $2.67 per pound. Buttermilk jumped 20.3% to $4,811.02 per ton or $2.18 per pound. Dairy products moved through Argentinian ports during the period from June 16 through June 30 totaled 9,008.32 tons at 21 destinations at an average price of $4,533.68 per ton. Whole milk powder price was unchanged at $4.336.18 per ton or $1.97 per pound. Skim milk powder declined 1.6% to $4,030.60 per ton or $1.83 per pound. Semi-hard cheese increased 0.5% to $4,741.50 per ton or $2.15 per pound. Hard cheese declined 3.8% to $5,969.94 per ton or $2.71 per pound. Butter declined 0.1% to $5,314.60 per ton or $2.41 per pound. Buttermilk gained 9.6% to $3,289.12 per ton or $1.49 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $20.13 |
| 6 Month: | $20.22 |
| 9 Month: | $20.01 |
| 12 Month: | $19.83 |
CHEESE
The strength of cheese prices does not necessarily indicate a bottom has been established. Hopefully, prices may have found a bottom and if they did, it would likely remain sideways for a period of time. Buyers will assess supply and demand as the rest of the year unfolds. Buyers have been content with current supplies and have been purchasing as needed.
BUTTER
Price showed further weakness today with the potential to retest the low of the trading range at $2.90. There is a growing possibility that price could fall below that level. However, downside may be limited. Domestic demand has slowed but export demand has improved significantly.
OUTSIDE MARKETS SUMMARY
September corn increased 7 cents ending at $6.1550. August soybeans jumped 73.75 cents closing at $16.9325 with August soybean meal up $14.90 per ton closing at $513.60. September wheat gained 1.75 cents closing at $7.8150. August live cattle declined $0.37 ending at $137.97. September crude oil declined $0.26 closing at $90.50 per barrel. The DOW declined 58 points ending at 32,774 while the NASDAQ declined 151 points closing at 12,494.
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