MILK
The July average soybean meal price was released at $443.15 per ton. This was an increase of $29.69 per ton from June and the highest monthly soybean meal price since April. This completes the calculation needed for income over feed for the Dairy Margin Coverage program. The July income over feed was $3.52 per cwt. This is a record low and results in a payment for those who chose the $9.50 level under the Dairy Margin Coverage program of $5.98 per cwt and have not reached the 5 million pounds cap. Payments will be received by anyone who chose the lowest level at the minimal price of $4.00 and those who enrolled at various levels for milk production over 5 million pounds. This has been a very great hardship for producers. It should be the lowest income over feed for the year as milk prices in August have rebounded significantly. It is uncertain as to what feed prices will do this year as the jury is still out as far as grain production is concerned. Hot weather is coming in again over the next few days and may take a toll and trim back the potential of the crop. Class III milk futures closed higher for the week even though futures set back today. Class IV futures closed lower for the week.
AVERAGE CLASS III PRICES
| 3 Month: | $18.71 |
| 6 Month: | $18.58 |
| 9 Month: | $18.54 |
| 12 Month: | $18.56 |
CHEESE
For the week, block increased 0.50 cent with 3 loads traded. Barrels increased 7 cents with 2 loads traded. Buyers and sellers of cheese were not very active with limited interest leading up to the Labor Day weekend. Dry whey increased 2.50 cents with 8 loads traded. Cheese demand is termed as steady with sufficient supply for demand with fresh cheese supply supplemented with inventory. Some varieties of cheese are seeing a greater increase in demand as pizza sales are increasing noticeably.
BUTTER
For the week, butter declined a penny with 44 loads traded. Buyers have been stepping up purchases to increase ownership in preparation for demand later in the year. The more buyers can purchase now, the less aggressive they will need to be later in the year. There is sufficient supply available as sellers want to move it to the market rather than hold it. Butter futures are right in line with the current cash price with traders holding no premium in the market. Traders hold little anticipation that the price will get any better.
OUTSIDE MARKETS SUMMARY
December corn closed up 3.25 cents per bushel at $4.8150, November soybeans closed up .50 cent at $13.6925 and December soybean meal closed down $4.40 per ton at $399.60. December Chicago wheat closed down 6.50 cents at $5.9550. October live cattle closed down $0.68 at $180.15. October crude oil is up $2.35 per barrel at $85.98. The Dow Jones Industrial Average is up 116 points at 34,838 with the NASDAQ down 3 points at 14,032.
