MILK
Nearby Class III futures showed quite a bit of volatility today with a large swing from high to low. The September contract had a high of $22.88 and a low of $22.42. October had a high of $23.40 and a low of $22.71. November had a high of $22.59 and a low of $22.04. These contracts closed lower on the day. The cheese prices remaining steady put pressure on the closer months. That may be short-lived if buyers continue to support the market. Class IV futures posted strong gains as the butter price moved above the previous high triggered aggressive buying with all contracts making new highs. June fluid milk sales totaled 3.2 billion pounds which was 2.9% below June 2023. Whole milk sales declined 2.4%; flavored whole milk declined 9.4%; reduced-fat milk sales declined 8.5%; low-fat milk declined 7.2%; fat-free declined 13.9%; flavored fat-reduced sales increased 0.4%; buttermilk declined 8.5% with other fluid milk sales up 56.1%. Organic whole milk sales increased by 4.6%; organic flavored whole milk jumped by 19.1%; organic reduced fat milk increased by 7.6%; organic low fat declined by 10.0%; organic fat-free declined by 6.4%; organic flavored fat-reduced sales increased by 47.1% with sales of other organic milk down 77.8%.
AVERAGE CLASS III PRICES
| 3 Month: | $21.98 |
| 6 Month: | $21.46 |
| 9 Month: | $20.63 |
| 12 Month: | $20.20 |
CHEESE
Cheese prices will unlikely decline much with the bias being for higher prices. However, the market is unpredictable and volatile with Fall and holiday demand driving prices. Cheese prices remained unchanged today leaving traders concerned over upside price potential, but they likely will continue to support the market.
BUTTER
This moves the price to a new high, the highest since October 31, 2023. It is now 7 cents below the high of 2022. Grade A nonfat dry milk increased 1.75 cents closing at $1.3150 with 13 loads traded. This is the highest nonfat price since January 3, 2023. The strength of butter seems to be on again and then off again, but it is possible record highs could be reached over the next few months. Trading activity remains strong.
OUTSIDE MARKETS SUMMARY
December corn closed up 6.25 cents per bushel at $3.9275, November soybeans closed up 5.75 cents at $9.8650 and December soybean meal closed up $4.00 per ton at $312.20. December Chicago wheat closed up 10.50 cents at $5.3550. October live cattle closed up $2.43 at $179.40. October crude oil is down $1.89 per barrel at $75.53. The Dow Jones Industrial Average is up 10 points at 41,251 with the NASDAQ up 29 points at 17,755.
