MILK
Milk production is variable. The most recent period of hot weather has impacted milk output more than the previous period. Milk production has had a more difficult time bouncing back in many cases. Nevertheless, milk production is rebounding to some extent. Class III milk futures were mixed but mostly higher but not to the extent that would have been anticipated with the increase of cheese prices. Class IV futures showed some strong gains in March and later contracts improving the price outlook for next year.
South Dairy Trade prices were reported showing mixed prices in Argentina and lower prices in Uruguay. In Argentina, there were 5,040.12 tons moving to 18 destinations at an average price of $4,063.29 per ton during the period from July 16-31.
Whole milk powder decreased 1.5% from the previous period averaging $3,777.79 or $1.71 per pound. Skim milk powder decreased 1.7% to $3,481.76 per ton or $1.58 per pound. Semi-hard cheese increased 2.2% to $4,781.87 per ton or $2.17 per pound. Hard cheese increased 5.1% to $6,602.29 per ton or $2.99 per pound. Butter increased 1% to $4,877.78 per ton or $2.21 per pound.
Dairy products moving through Uruguay from Aug.16-31 totaled 7,244.98 tons to 19 destinations at an average price of $3,688.36 per ton. Whole milk powder decreased 4.2% to $3,529.89 per ton or $1.60 per pound. Skim milk powder decreased 4.4% to $3,272.67 per ton or $1.48 per pound. Semi-hard cheese decreased 2.4% to $4,780.65 per ton or $2.17 per pound. Hard cheese decreased 1.7% to $6,449.42 per ton or $2.93 per pound. Butter decreased 4.8% to $4,911.96 per ton or $2.23 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $18.30 |
| 6 Month: | $18.28 |
| 9 Month: | $18.33 |
| 12 Month: | $18.40 |
CHEESE
Cheese orders are reported as steady for the time being. Some plants are reducing production schedules for maintenance while others are running on full schedules. This depends on variety and on how much spot milk is purchased.
Supply of spot milk has been tighter as milk receipts have decreased due to the decline of milk production because of hot weather. Milk production will bounce back to some extent, allowing more milk availability for manufacturing.
BUTTER
Butter price moving above the previous high and back to the highest price since Dec. 19, 2022, opens the way for further upside. This may bring increased buyer interest into the market as they purchase ahead of further price increases.
OUTSIDE MARKETS SUMMARY
December corn closed up 5.75 cents per bushel at $4.8225, November soybeans closed up 3.25 cents at $13.4975 and December soybean meal closed down $3.30 per ton at $394.80. December Chicago wheat closed up 9.75 cents at $5.9725. October live cattle closed down $1 at $183.15. October crude oil is down $0.32 per barrel at $88.52. The Dow Jones Industrial Average is down 70 points at 34,576 with the NASDAQ up 40 points at 13,814.
