MILK
It was an explosive high-volume day for Class III futures. The September and October contracts closed limit up with over 1,300 contracts traded in each. October moved above $23.00. The December contract is nearing $21.00 but could not quite reach that level due to futures being limited by the 75-cent daily trading limit. This was an about-face from Friday when buyers did not want to purchase even at the lower prices. The July Cold Storage report may have influenced the price strength. Inventory declined in July with cheese supplies 6% below a year ago. The reduced level of milk production and declining inventory may increase buying interest as the industry looks ahead to Fall and holiday demand. Manufacturing milk supplies have been reduced due to more milk moving to bottling for the school systems. Reduced manufacturing and lower inventory may keep buyers active as September unfolds.
AVERAGE CLASS III PRICES
| 3 Month: | $22.07 |
| 6 Month: | $21.49 |
| 9 Month: | $20.61 |
| 12 Month: | $20.14 |
CHEESE
Cheese buyers turned aggressive as they saw the July inventory report and wanted to take advantage of the price declines of last week. However, the market provided a limited opportunity to purchase at lower prices as not much activity took place with prices higher than before. There may be further buying on Tuesday, but price increases may temper the buying interest. The block price moved to the highest level since January 11, 2023.
BUTTER
Butter inventory in July was higher than a year ago, but buyers wanted to increase ownership in preparation for upcoming demand. The price is poised to move above last week's high as reduced churning may limit the amount of butter in inventory over the next few months.
OUTSIDE MARKETS SUMMARY
December corn closed down 4.50 cents per bushel at $3.8650, November soybeans closed up 7.75 cents at $9.8075 and December soybean meal closed up $3.70 per ton at $308.20. December Chicago wheat closed down 3.00 cents at $5.2500. October live cattle closed up $1.28 at $176.98. October crude oil is up $2.59 per barrel at $77.42. The Dow Jones Industrial Average is up 65 points at 41,241 with the NASDAQ down 152 points at 17,726.
