MILK
Milk futures showed some significant pressure for the third consecutive day. This has eliminated a lot of the gains of last week. Underlying cash just does not provide consistent support to develop a higher price trend for cheese, dry whey and nonfat dry milk with price increases short-lived. USDA released the Federal Order class price for the month of August. Class II price increased $0.25 to $26.91. Class III price declined $2.42 reaching a level of $20.10. Class III price declined $0.98 to $24.81. That compares to a Class II price for August 2021 of $16.51, a Class III price of $15.95 and a Class IV price of $15.92. Quite a nice improvement, but high cost of production eliminates the benefits of higher prices. USDA released the July Agricultural Prices report today showing some surprising changes from the previous month and the previous year. The average corn price was $7.25, down $0.12 from June but up $1.23 per bushel from a year ago. the All-milk price was $25.70, down $1.20 from June but $5.60 higher than a year ago. The big change was for premium/supreme hay at $333.00 per ton or July, up $56.00 per ton from June and up $93.00 from a year ago. FSA has not yet posted the average soybean price, so we do not yet know the income over feed for the month. I will report that tomorrow.
AVERAGE CLASS III PRICES
| 3 Month: | $20.06 |
| 6 Month: | $20.37 |
| 9 Month: | $20.37 |
| 12 Month: | $20.37 |
CHEESE
Cheese prices are likely to continue to chop around. However, blocks may again touch to recent lows and possibly fall below that level before the weekend. Buyers remain unaggressive in the spot market as there is sufficient cheese available to the market with buyers able to purchase much of what they need in the country. This allows them to prepare for holiday demand without having to be aggressive on the spot market.
BUTTER
Price may remain in a sideways range between $3.00 and $3.10. Lower butter inventory keeps buyers coming to the daily spot market to pick up supply that they are unable to obtain through regular sellers in the country. Inventory is increasing but remains far below the level of a year ago.
OUTSIDE MARKETS SUMMARY
September corn declined 6 cents ending at $6.7375. September soybeans declined 5.50 cents closing at $15.0750 with September soybean meal down $3.50 per ton closing at $458.90. September wheat gained 10.75 cents ending at $8.09. October live cattle declined $1.25 closing at $142.57. October crude oil fell $2.09 closing at $89.55 per barrel. The DOW declined 280 points closing at 31,510 while the NASDAQ declined 67 points ending at 11,816.
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