MILK
Milk futures were under pressure with most of the selling taking place in Class III futures. The September contract reached the 75-cent limit down but did not remain there. The weakness of cheese prices did not suggest futures would be hit as hard as they have. However, traders did not view the continued weakness of cheese as positive. On July 31, September Class III futures reached a high of $21.83 and reached a low today of $19.70 with the price closing at the lowest level since May 30. The price is not likely to remain at this level, but it will be difficult to regain what was lost over the past four days. Class IV futures showed some pressure, but minor compared to the Class III futures. The weakness of nonfat dry milk price triggered minor selling as traders had little else to provide direction. Milk production is lower than a year ago but continues to follow a seasonal pattern. The Dairy Revenue Protection insurance prices will not be released today due to the release of the Dairy Products report.
AVERAGE CLASS III PRICES
| 3 Month: | $20.15 |
| 6 Month: | $19.71 |
| 9 Month: | $19.24 |
| 12 Month: | $19.02 |
CHEESE
The June Dairy Products report showed American-type cheese production at 457 million pounds. This was 4.9% below June 2023. This is one of the main reasons that American cheese inventory is below a year ago. Demand has been holding steady but lower production has reduced inventory. Italian-type cheese production totaled 486 million pounds, down 0.1% from June 2023. Total cheese output reached 1.16 billion pounds and was 1.4% below a year ago. Dry whey production totaled 81.5 million pounds, down 7.5% from a year ago. Lactose production was down 3.4% at 94.8 million pounds. Whey protein concentrate output totaled 40.6 million pounds, down 7.0% from June 2023
BUTTER
Butter production in June totaled 169 million pounds and was 2.8% above June 2023. Nonfat dry milk production totaled 128 million pounds, down 26.1%. Skim milk powder production totaled 60.5 million pounds, up 21.6%. The production of regular ice cream was 0.3% lower at 66.5 million gallons.
OUTSIDE MARKETS SUMMARY
December corn closed up 3.75 cents per bushel at $4.0700, November soybeans closed up 13.50 cents at $10.4075 and December soybean meal closed up $7.20 per ton at $331.80. September Chicago wheat closed up 0.50 cent at $5.3950. October live cattle closed down $3.08 at $179.00. September crude oil is up $.33 per barrel at $73.85. The Dow Jones Industrial Average is down 1,034 points at 38,703 with the NASDAQ down 576 points at 16,200.
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