MILK
Class III futures were able to post gains for the week despite some of the weakness experienced during the week. It is interesting that blocks declined for the week, but futures were able to gain. Class IV futures were lower for the week due to minor pressure on butter price. South Dairy Trade reports showed mostly lower prices for dairy products moving through port in Argentina and Uruguay during a two-week period. From July 1-15, there were 5,833.34 tons of dairy production moved to 18 destinations at an average price of $4,199.69 per ton. Whole milk powder price decreased 2.6% from the previous two-week period averaging $3,834.28 or $1.74 per pound. Skim milk powder decreased 3.4% to $3,540.48 per ton or $1.61 per pound. Semi-hard cheese decreased 2.2% to $4,678.97 per ton or $2.12 per pound. Hard cheese decreased 1.9% to $6,279.67 per ton or $2.85 per pound. Butter increased 3.3% from the previous period to $4,829.15 per ton or $2.19 per pound. Uruguay had 7,739.40 tons of dairy products moving to 18 destinations at an average price of $3,728.79 per ton during the period from August 1-15. Whole milk powder price increased 1.6% from the previous period at $3,685.40 per ton or $1.67 per pound. Skim milk powder fell 11.5% to $3,421.59 per ton or $1.55 per pound. Semi-hard cheese increased 0.2% to $4,899.35 per ton or $2.22 per pound. Hard cheese decreased 0.4% to $6,558.15 per ton or $2.97 per pound. Butter decreased 1.6% to $5,158.37 per ton or $2.34 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $18.27 |
| 6 Month: | $18.29 |
| 9 Month: | $18.30 |
| 12 Month: | $18.33 |
CHEESE
For the week, blocks declined 8.25 cents with 4 loads traded. Barrels slipped 0.75 cent with 9 loads traded. Dry whey increased a penny with 11 loads traded. After the previous week showing more pressure on barrels, the opposite was true this week. It does not seem as if it is a matter of one category having more supply than the other, but more a matter of who needs to take care of business during the week. Cheese prices are not expected to see much downside in the near future. However, prices will remain choppy.
BUTTER
For the week, butter declined 3 cents with 70 loads traded. Grade A nonfat dry milk remained unchanged with 9 loads traded. It is interesting that butter plants indicate there is a bit more cream available due in part to the reducing of Class II product output as well as cream coming from processing more milk for school accounts. This has increased churning to some degree but certainly not enough to put continued pressure on butter price.
OUTSIDE MARKETS SUMMARY
December corn closed down 0.25 cent per bushel at $4.8800, November soybeans closed up 16.00 cents at $13.8775 and December soybean meal closed up $2.70 per ton at $415.00. December Chicago wheat closed down 10.00 cents at $6.2175. October live cattle closed up $0.45 at $181.18. October crude oil is up $0.97 per barrel at $80.02. The Dow Jones Industrial Average is up 237 points at 34,336 with the NASDAQ up 127 points at 13,591.
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