MILK
It was a slow trading day, resulting in Class III futures slipping lower, while Class IV futures showed some minor strength. The only movement of underlying cash was in butter and nonfat dry milk. At least the markets are not falling apart, but they seem balanced with limited need for buyers and sellers to come to the spot market. Buyers have no sense of urgency over supply. South Dairy Trade recorded stronger prices for cheese from the previous report. Dairy products moved though ports in Argentina from June 16-30 totaled 4,452.69 tons to 14 destinations at an average price of $4,233.55 per ton. Whole milk powder declined 0.9% to $3,936.18 per ton or $1.79 per pound. Skim milk powder declined 0.4% to $3,666.37 per ton or $1.66 per pound. Semi-hard cheese gained 4.3% to $4,782.01 per ton or $2.17 per pound. Hard cheese gained 5.8% to $6,403.95 per ton or $2.90 per pound. Butter declined 0.7% to $4,675.68 per ton or $2.12 per pound. Dairy products moving through ports in Uruguay July 16-31 totaled 6,575.71 tons to 16 destinations at $3,764.68 per ton. Whole milk powder declined 2.9% from the previous period to $3,627.81 per ton or $1.65 per pound. Skim milk powder gained 0.6% to $3,864.46 per ton or $1.75 per pound. Semi-hard cheese declined 0.5% to $4,890.02 pe ton or $2.22 per pound. Hard cheese increased 7.9% to $6,583.71 per ton or $2 per pound. Butter increased 0.7% to $5,242.35 per ton or $2.38 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $17.78 |
| 6 Month: | $18.06 |
| 9 Month: | $18.14 |
| 12 Month: | $18.20 |
CHEESE
There has been a significant change in prices for spot milk prices in the Midwest. Offers have decreased dramatically with some spot milk now moving at prices slightly above class. That is a huge swing over the past few weeks. Buyers of cheese were aggressive for a few weeks in an attempt to purchase cheese before prices moved much higher. However, that urgency seems to have diminished for the time being as cheese demand has remained steady.
BUTTER
Cream supplies have tightened in some areas with extra loads being difficult to find. Plants are churning with contracted loads with reduced schedules. Due to the reduced churning, the inventory of butter is decreasing. This may support price, but upside price potential may be limited as higher prices may affect the export market.
OUTSIDE MARKETS SUMMARY
December corn closed down 4.50 cents per bushel at $4.9425, November soybeans closed up 2.50 cents at $13.0850 and December soybean meal closed down $3.20 per ton at $390.80. September Chicago wheat closed down 21.25 cents at $6.3500.
October live cattle closed up $0.80 at $181.70. September crude oil is up $1.31 per barrel at $84.23. The Dow Jones Industrial Average is down 191 points at 35,123 with the NASDAQ down 162 points at 13,722.
