MILK
Milk futures closed lower to end the week as spot prices showed weakness. Class III futures showed strength early in the day, pushing to new highs, but that quickly reversed as sellers became more aggressive during spot trading. Futures did not fall as much as expected with the weakness of cash but did send further caution through the market. It was anticipated cheese prices would hold but sellers were more adamant about moving products ahead of the weekend.
This should be considered as normal market movement and prices will always ebb and flow. It does not mean that the top has been reached. It just feels that way as milk prices have been so low this year and all would like to see prices being supported and higher gains continuing to unfold. The volume of dairy exports during July totaled 186,403 metric tons (mt), down 24,594 mt or 11.7% from July 2023. Year-to-date exports have totaled 1,379,014 mt, down 6.6% from the same period last year.
AVERAGE CLASS III PRICES
| 3 Month: | $18.79 |
| 6 Month: | $18.66 |
| 9 Month: | $18.61 |
| 12 Month: | $18.62 |
CHEESE
For the week, cheese declined 2.50 cents with 3 loads traded. Barrels declined 4.25 cents with 2 loads traded. Dry whey declined 0.25 cent with 11 loads traded. July exports of cheese totaled 36,778 mt, down 433 mt or 1.2% from July 2022. This certainly is positive as exports are improving after the first six months of significant declines. Year-to-date exports totaled 250,606 mt, down 15,948 mt or 6% from the same period a year ago. Whey exports totaled 33,654 mt, down 21,605 mt or 39.1% from a year ago. Year-to-date exports totaled 280,553 mt, down 72,103 mt or 20.4% from the same period last year.
BUTTER
For the week, butter increased 2 cents with 49 loads traded. Grade A nonfat dry milk decreased 0.25 cent with 11 loads traded. Butterfat exports in July totaled 3,394 mt, down 4,092 mt or 54.7% from a year ago. Year-to-date exports total 24,530 mt, down 20,445 mt or 45.5% from the same period a year ago. Whole milk powder exports totaled 3,453 mt, up 701 mt or 25.5% from a year ago. Year-to-date exports total 16,337 mt, down 8,685 mt or 34.7% from the same period last year. Nonfat dry milk/skim milk powder exports totaled 65,549 mt, up 1.783 mt or 2.8% from July 2022. Year-to-date exports total 490,118 mt, down 3,057 mt or 0.6% from the same period last year.
OUTSIDE MARKETS SUMMARY
December corn closed down 2.50 cents per bushel at $4.8375, November soybeans closed up 3.50 cents at $13.6300 and December soybean meal closed up $6.10 per ton at $401.40. December Chicago wheat closed down 4 cents at $5.9575. October live cattle closed down $0.43 at $183.23. October crude oil is up $0.36 per barrel at $87.23. The Dow Jones Industrial Average is up 76 points at 34,577 with the NASDAQ up 13 points at 13,762.
