MILK
Today's September and October Class III milk futures contracts moved above $21.00. It was a new contract high for October but shy of a new high for September. The market is anticipating stronger underlying cash prices as the summer progresses. USDA released the June Milk Production report which showed milk decreasing as expected. Milk production in the top 24 states totaled 18.0 billion pounds, down 0.8% from a year ago. Milk output in May was revised to 18.8 billion pounds, down 0.8% from May 2023. Milk production per cow totaled 2,025 pounds, down 8 pounds from June 2023. Cow numbers totaled 8.89 million head, down 37,000 from the previous year, but 2,000 more than May.
U.S. milk production totaled 28.767 billion pounds, down 1.0% from June 2023. Milk production per cow was 6 pounds lower than a year ago. Cow numbers increased by 2,000 head from May. There were 17 of the top 24 states which showed decreased milk production from a year ago. The largest decline was in New Mexico with a decrease of 12.5% followed by Georgia with a decrease of 8.1%. South Dakota showed an increase of 8.3% followed by Florida with an increase of 4.9%. The rest of the gains were seen in Texas with a gain of 3.1%; Washington up 1.7%; Iowa up 1.2%; Wisconsin up 0.9%; and Oregon unchanged.
AVERAGE CLASS III PRICES
| 3 Month: | $20.45 |
| 6 Month: | $20.42 |
| 9 Month: | $19.80 |
| 12 Month: | $19.41 |
CHEESE
Cheese prices showed strength as buyers became more aggressive today, possibly fearing a greater slowdown in milk production than anticipated through the summer. The supply could tighten as inventory may decline more rapidly than usual. Milk production running below a year earlier this year has resulted in cheese inventory running slightly below a year ago.
BUTTER
Butter held today with business being done. Buyers are not concerned over supply as sellers continue to offer butter to the market. Some butter has been purchased ahead for contracted amounts for the third and fourth quarters with buyers purchasing supply when available without chasing the market higher.
OUTSIDE MARKETS SUMMARY
December corn closed up 2.25 cents per bushel at $4.1725, November soybeans closed up 6.75 cents at $10.7550 and December soybean meal closed down $.30 per ton at $319.10. September Chicago wheat closed down 5.25 cents at $5.4275. October live cattle closed up $1.53 at $186.13. September crude oil is down $1.44 per barrel at $76.96. The Dow Jones Industrial Average is down 57 points at 40,358 with the NASDAQ down 10 points at 17,997.
