MILK
Class III milk took it on the chin today as the recent streak of four consecutive increases came to a halt, hopefully only briefly. Underlying spot cheese prices declined triggering selling in the milk futures. USDA released the World Agricultural Supply and Demand report today showing their estimates of milk production, milk prices, and product prices for this year and next year. They left their estimate of milk production this year unchanged from the June estimate at 228.4 billion pounds. They reduced the estimate for next year to 230.6 billion pounds, down 200 million pounds. If this comes to fruition, production this year would be 1.9 billion pounds above last year with next year's production 2.2 billion pounds more than this year and another record milk output. On a fat basis, marketings were unchanged this year at 227.4 billion pounds, but reduced next year 200 million pounds to an estimate of 229.6 billion pounds. Exports were reduced this year by 300 million pounds to 11.6 billion pounds and reduced 200 million pounds next year to 12.6 billion pounds from their June estimate. Domestic use was increased 200 million pounds this year to 223.4 billion pounds and reduced next year by 100 million pounds to the current estimate of 224.6 billion pounds. The average Class III milk price this year was reduced $0.65 to $16.05 with the average price reduced $1.05 to $15.95 for the next year. The Class IV price was reduced $0.15 this year to an average of $18.20 and left unchanged next year at $17.45. The All-milk price this year was reduced $0.40 to $19.55 with the average for next year at $19.10. down $0.55 per cwt from the June estimate.
AVERAGE CLASS III PRICES
| 3 Month: | $14.82 |
| 6 Month: | $16.01 |
| 9 Month: | $16.52 |
| 12 Month: | $16.83 |
CHEESE
USDA reduced the estimate for cheese price this year to $1.6750 per pound, down 2.50 cents from the June estimate. The average price for 2024 was reduced to $1.69, down 8.50 cents from the previous estimate. Dry whey price was reduced 2 cents per pound this year to an average of 35.0 cents and reduced next year by 4.50 cents to an average of 31.50 cents per pound. Their estimates certainly do not provide a positive outlook.
BUTTER
The average butter price remained unchanged for June at $2.4350 with the average price for 2024 increasing a penny to $2.3450. Nonfat dry milk price was reduced 2 cents to an average of $1.17 with price next year down 0.50 cent to an average of $1.1250 per pound.
OUTSIDE MARKETS SUMMARY
December corn closed down 17.75 cents per bushel at $4.8375, November soybeans closed down 32.50 cents at $13.2775 and December soybean meal closed down $8.70 per ton at $390.40. September Chicago wheat closed down 27.75 cents at $6.3275. August live cattle closed down $1.95 at $176.88. August crude oil is up $0.92 per barrel at $75.75. The Dow Jones Industrial Average is up 86 points at 34,347 with the NASDAQ up 158 points at 13,919.
