MILK
Despite some gains early in the week in Class III milk futures, nearby contracts closed lower than a week ago. Some concerns have developed over the impact of hot weather and the resulting decline in milk production that may be seen. That has not affected traders in the spot market. USDA released the World Agricultural Supply and Demand Estimates (WASDE) report today. USDA reduced its estimated milk production this year by 400 million pounds from its June estimate. USDA estimates production of 226.9 billion pounds. Milk production for the next year was reduced by 200 million pounds, to 229.1 billion pounds. The average Class III milk price is estimated to be $18.25, up $0.35 from the June estimate. The estimate for 2025 was raised by $0.75, to an average of $18.45. The Class IV price average was raised by $0.25, to an average of $20.75 this year and raised by $0.50, to $20.60 for 2025. The all-milk price was raised by $0.65 to an average of $22.25 this year and raised $1.00, to $22.50 next year.
AVERAGE CLASS III PRICES
| 3 Month: | $19.87 |
| 6 Month: | $19.88 |
| 9 Month: | $19.46 |
| 12 Month: | $19.19 |
CHEESE
For the week, block cheese was down a penny with 12 loads traded. The barrel cheese price dropped by 5.25 cents with 31 loads traded. Dry whey price increased 1.75 cents with three loads traded. USDA raised its estimate for the average cheese price this year to $1.82, up $0.03 from the June estimate. The price for 2025 was raised by $0.06 per pound to $1.8550. The dry whey price was raised by 0.50 cent to an average of 44 cents this year. The price for 2025 was raised by 2.50 cents to an average of 42.50 cents per pound.
BUTTER
For the week, the butter price dropped 3.25 cents with 22 loads traded. The Grade A nonfat dry milk price remained steady at $1.18 with 14 loads traded. The estimated butter price was raised by USDA by 0.0350 cents to $3.0050 and raised the next year to $2.9650, up $0.02 from the June estimate. USDA raised its estimate of nonfat dry milk price by a penny to an average of $1.1850 per pound. Next year's estimate was raised by $0.05 to an average of $1.19.
OUTSIDE MARKETS SUMMARY
December corn closed up 4.00 cents per bushel at $4.1475, November soybeans closed down 2.50 cents at $10.6525 and December soybean meal closed down $1.40 per ton at $314.10. September Chicago wheat closed down 20.50 cents at $5.5075. August live cattle closed up $0.13 at $182.38. August crude oil is down $0.41 per barrel at $82.21. The Dow Jones Industrial Average is up 247 points at 40,001 points with the NASDAQ up 115 points at 18,398.
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