MILK
Class III milk futures began the week very strong but took a beating in the last half of the week. Some stability was seen today despite the large decline in the barrel cheese price. It seems traders do not feel underlying cash prices have much downside potential. The weakness of underlying cash prices today should have put more pressure on futures, but the July Cold Storage report may have limited to weakness. The bearish implications of the July Milk Production report may be tempered by the lower inventory for the month. Milk production may be near the seasonal low in the next few weeks. Cow comfort will improve with cooler weather. All schools will be in session over the next two weeks with milk moving to maintain the school pipeline for the rest of the school year.
AVERAGE CLASS III PRICES
| 3 Month: | $21.54 |
| 6 Month: | $20.89 |
| 9 Month: | $20.13 |
| 12 Month: | $19.76 |
CHEESE
For the week, blocks declined 6.25 cents with six loads traded. Barrels fell 15.50 cents with two loads traded. The strong buying interest of the past few weeks dried up quickly as the need for barrels was satisfied for the time being. Dry whey increased by 1.50 cents with two loads traded. American cheese inventory in July declined 7.4% totaling 794.1 million pounds. Stocks are 6% below July 2023. Swiss cheese inventory increased 29,000 pounds totaling 22.4 million pounds or 2% below a year ago. Other cheese inventory declined 2.8% to 590.5 million pounds and 6% below a year ago. Total cheese inventory reached 1.407 billion pounds. This decline was 10.2 million pounds lower than in June and was 6% below a year ago.
BUTTER
For the week, butter declined 5 cents with 54 loads traded. Nonfat dry milk gained 2.75 cents with 22 loads traded. Butter inventory in July fell by 23.0 million pounds totaling 353.8 million pounds. This was a decline of 6% from June but remains 7% above July 2023.
OUTSIDE MARKETS SUMMARY
December corn closed down 2.50 cents per bushel at $3.9100, November soybeans closed up 11.50 cents at $9.7300 and December soybean meal closed up $.40 per ton at $304.50. December Chicago wheat closed down 7.50 cents at $5.2800. October live cattle closed down $0.20 at $175.70. October crude oil is up $1.94 per barrel at $74.95. The Dow Jones Industrial Average is up 462 points at 41,175 with the NASDAQ up 258 points at 17,878.
