MILK
The gains in Class III futures today were fueled by the increase of block cheese and the rebound of barrels from the lows. Barrel price closed lower but the bounce from the low was impressive. That does not necessarily mean that price has found a bottom again and will trend higher. It could be establishing a sideways trading pattern. Dairy cattle slaughter in July totaled 244,200 head. This was a decrease of 11,500 head from June but was an increase of 14,100 head from July 2022. This was the lowest monthly slaughter since April. Recent very hot weather in the Midwest and prolonged heat in other areas of the country have taken their toll on milk output. This will be difficult for cows to rebound from, but cooler weather will allow the cows to bounce back to some degree. All schools will be open over the next week or so with school accounts requiring significant and consistent volumes of milk. This is seasonal and not unexpected but it does tighten milk supply available for manufacturing. Hopefully, demand will also improve, and milk prices will rise.
AVERAGE CLASS III PRICES
| 3 Month: | $18.05 |
| 6 Month: | $18.12 |
| 9 Month: | $18.16 |
| 12 Month: | $18.23 |
CHEESE
Cheese buyers are not overly aggressive on the cash market as they have been able to pick up needed supply through regular channels. There is sufficient cheese available for demand as inventory is being used to supplement fresh supply to meet demand. Fresh cheddar cheese is what is traded on the CME daily spot market and if there is a greater demand for fresh cheese, price will rise as buyers will be more aggressive. If demand is greater for aged cheese, they will be purchasing that through other channels in the country as it is not traded on the CME.
BUTTER
Butter is available with buyers and sellers able to take care of business as needed. There have been substantial amounts of butter traded over the past two weeks on the daily spot market with demand being met. Inventory remains above a year ago with buyers already purchasing for demand later in the year. Price is expected to remain sideways for a period.
OUTSIDE MARKETS SUMMARY
December corn closed down 2.25 cents per bushel at $4.8825, November soybeans closed up 11.25 cents at $13.7175 and December soybean meal closed up $11.30 per ton at $412.30. December Chicago wheat closed down 8.00 cents at $6.3175. October live cattle closed up $2.05 at $180.73. October crude oil is up $0.16 per barrel at $79.05. The Dow Jones Industrial Average is down 374 points at 34,099 with the NASDAQ down 257 points at 13,464.
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