MILK
Class III milk futures had a rather quiet day compared to what we have been experiencing recently. It was a little refreshing not having to hang onto your seat throughout the day. Underlying cheese prices remained steady for the second consecutive day. This provided no direction for traders resulting in a limited volume of trades taking place. The July Federal Order prices were announced today with the Class II price at $19.12, an increase of $0.29 from June but down $7.54 from July 2022. The Class III price was $13.77, down $1.14 from June and down $8.75 from July 2022. Class IV was announced at $18.26, unchanged from June but down $7.53 from a year ago. The Class III price was the lowest since May 2020 and the lowest price for the month of July since 2010. Overall milk volume is trending lower as heat and humidity and reduced cow numbers are having an impact on milk production.
AVERAGE CLASS III PRICES
| 3 Month: | $17.66 |
| 6 Month: | $17.92 |
| 9 Month: | $18.00 |
| 12 Month: | $18.06 |
CHEESE
Milk production is decreasing seasonally and, in some cases, a little more rapidly than expected. Low milk prices and high cull prices have resulted in heavier culling as low-producing cows are culled. Spot milk prices have improved with prices running about $2.00 below class. Cheese plants are not finding much extra milk and are receiving fewer calls or no calls from plants needing to move milk. This does not mean the market has tightened far enough to cause concern. Buyers of cheese are just taking precautions and beginning to purchase ahead for later demand.
BUTTER
Cream supply is decreasing as hot weather decreases butterfat and ice cream production is strong. Butter demand is steady for both retail and food service. Inventory is decreasing seasonally but continues to remain above a year ago.
OUTSIDE MARKETS SUMMARY
December corn closed down 6.75 cents per bushel at $5.0050, November soybeans closed down 20.00 cents at $13.2125 and December soybean meal closed down $6.10 per ton at $392.20. September Chicago wheat closed down 12.25 cents at $6.4000. October live cattle closed down $1.33 at $180.50. September crude oil is down $1.62 per barrel at $79.75. The Dow Jones Industrial Average is down 348 points at 35,283 with the NASDAQ down 310 points at 13,973
