MILK
Milk production remains variable across the country with many areas experiencing hot weather. This is impacting cow comfort and is reducing milk receipts at the plant level. Many farms have very good cooling systems, but with weather this hot, those systems are not able to keep up with the heat. This remains quite a bit of concern over crop conditions and what that may mean for available feed this year and at what price. The potential for depressed milk prices remains very real and will make it more difficult if feed prices are higher. South Dairy Trade showed weakness in cheese prices. Dairy products moving through the ports in Argentina for this first half of June totaled 5,722.13 tons to 15 destinations. Whole milk powder price declined 0.6% to $3,970.08 per ton or $1.80 per pound. Skim milk powder increased 0.1% to $3,679.65 per ton or $1.67 per pound. Semi-hard cheese increased 0.7% to $4,585.09 per ton or $2.08 per pound. Hard cheese price declined 3.8% to $6,053.61 per ton or $2.75 per pound. Butter increased 5.7% to $4,706.78 per ton or $2.13 per pound. Buttermilk increased 3.2% to $3,200 per ton or $1.45 per pound. Dairy products moving through Uruguay during the first half of July totaled 5,752.64 tons to 18 destinations. Whole milk powder price declined 7.7% from the previous period to $3,735.15 per ton or $1.69 per pound. Skim milk powder increased 2.8% to $3,840.98 per ton or $1.74 per pound. Semi-hard cheese fell 11.3% from the previous period to $4,917.06 per ton or $2.23 per pound. Hard cheese declined 7.9% to $6,103.98 per ton or $2.77 per pound. Butter increased 3.4% to $5,203.88 per ton or $2.36 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $16.04 |
| 6 Month: | $17.14 |
| 9 Month: | $17.51 |
| 12 Month: | $17.72 |
CHEESE
Cheese trade was mixed today which put traders in some confusion as to what the next price direction will be. Barrels showed weakness with low bids being placed while sellers were not willing to offer too much lower. If block price holds steady to higher, barrels price will have limited downside. Tightening milk supplies might result in less cheese production leaving less extra cheese to be offered on the spot market.
BUTTER
Cream supplies have tightened with reports of some plants not having been offered spot loads of cream the past few weeks. Some cream has been moving from the West to the Upper Midwest to meet processing needs. Reduced churning activity may impact product availability over time.
OUTSIDE MARKETS SUMMARY
December corn closed down 6.00 cents per bushel at $5.4225, November soybeans closed down 22.00 cents at $13.9800 and December soybean meal closed down $3.00 per ton at $415.60. September Chicago wheat closed down 7.25 cents at $7.1275. October live cattle closed down $0.45 at $179.50. September crude oil is up $1.31 per barrel at $80.09. The Dow Jones Industrial Average is down 237 points at 35,283 with the NASDAQ down 77 points at 14,050.
