MILK
Class III milk futures settled back more than Class IV as Class III contracts needed to correct further. However, even with the correction, it seemed the market was less willing to give up gains compared to previous times of underlying price weakness. Traders seem to be a bit more reluctant to sell into the market. One would have to think Fall and holiday demand would have some impact on prices as buyers would be stepping up a little more to increase ownership at these lower prices rather than possibly chasing it higher to some extent later. Buyers seem to be content to continue to purchase on an as-needed basis. Milk production increased slightly in July and is expected to increase further as the weather cools improving cow comfort and feed intakes. Class I fluid milk demand is increasing as schools are open with other schools opening over the next 2 weeks. USDA will release the July Livestock Slaughter report tomorrow. The report contains dairy cattle slaughter of which we will be able to compare the slight increase of cow numbers on the milk production report to slaughter numbers.
AVERAGE CLASS III PRICES
| 3 Month: | $20.13 |
| 6 Month: | $20.55 |
| 9 Month: | $20.46 |
| 12 Month: | $20.39 |
CHEESE
It is reported that the volatility of cheese on the spot market has increased some interest of buyers to step up and purchase some cheese ahead of time rather than continue to purchase on an as-needed basis. It certainly does not appear that is taking place, but much of this could be taking place with higher sales volume in the country rather than aggressive buying on the daily spot market. Demand is termed as steady to slightly higher in the Midwest.
BUTTER
Price may fall back into the range it has been in for quite some time. It seems anything over $3.00 meets with price resistance. There has been quite a bit of activity over the past weeks in the spot market even at these higher prices. Buyers have not been shy about increasing ownership for later demand. Strong buying may slow once buyers have sufficient on hand for expected demand.
OUTSIDE MARKETS SUMMARY
September corn gained 5.75 cents closing at $6.6575. September soybeans declined 6 cents ending at $15.6075 with September soybean meal down $0.80 ending at $467.70 per ton. September wheat gained 12.25 cents closing at $7.95. August live cattle declined $0.30 closing at $141.32. September crude oil gained $1.15 closing at $94.89 per barrel. The DOW gained 60 points closing at 32,969 while the NASDAQ gained 50 points closing at 12,432.
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