MILK
Class IV futures showed exceptional gains as the futures were marked to market at the end of the day. The surprising strength of nonfat dry milk during spot trading provided the support for futures. This has moved Class IV contracts above Class III contracts. Milk production is holding at a seasonal low level in most areas. Cooler weather is moving into many areas again the rest of this week which will improve cow comfort. Cows likely will not bounce back completely as the past periods of hot weather have taken a toll depending on lactation. However, milk supply is sufficient for demand for both bottling and manufacturing. A large amount of milk is being bottled for school accounts limiting the availability of spot milk and what is available is priced over class.
AVERAGE CLASS III PRICES
| 3 Month: | $18.72 |
| 6 Month: | $18.62 |
| 9 Month: | $18.58 |
| 12 Month: | $18.59 |
CHEESE
Price has increased significantly over the past week moving it near the previous high. Buyers have been aggressive but at the current price level, they may reduce their aggressiveness hoping sellers will want to move more to the market. Cream supply was more available over the holiday weekend allowing churns more access to supply for churning. Demand from the retail and food service industry is steady to a bit stronger.
BUTTER
Butter output in July reached 157 million pounds which was 3.5% above July 2022. Nonfat dry milk production totaled 135 million pounds, down 18.6% from July 2022. Skim milk powder output totaled 62.6 million pounds, up 2.6%. Regular ice cream production totaled 62 million pounds, up 1.5% from a year ago.
OUTSIDE MARKETS SUMMARY
December corn closed down 0.25 cent per bushel at $4.8575, November soybeans closed up 11.25 cents at $13.7625 and December soybean meal closed up $1.60 per ton at $399.20. December Chicago wheat closed up 9.75 cents at $6.0900. October live cattle closed up $2.75 at $182.70. October crude oil is up $0.88 per barrel at $87.57. The Dow Jones Industrial Average is down 199 points at 34,443 with the NASDAQ is down 148 points at 13,872.
