GENERAL OVERVIEW:
The second half of the week was negative for Class III futures while the entire week was negative for Class IV futures. The butter price took the biggest hit this week. The June Cold Storage report showed lower butter and higher cheese inventories.
MILK:
Class III futures found support as the block cheese price increased. This improved futures prices immensely from July 7 to July 22. Futures prices weakened in response to the bearish milk production report, and they fell today as a result of the block price falling. Concern may be increasing that block cheese could follow the pattern of the previous time when the price fell back. Class IV futures have been under pressure the entire week in response to the weakness in butter and nonfat dry milk. The June Livestock Slaughter report showed there were 208,100 dairy cattle slaughtered. This was up 16,400 from May and up 19,400 head from June 2025. Even though slaughter was higher, the nation's dairy herd increased by 19,000 head from May according to the June Milk Production report.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.82 |
| 6 Month: | $17.21 |
| 9 Month: | $17.28 |
| 12 Month: | $17.36 |
CHEESE:
For the week, the block cheese price decreased by 2.00 cents with 16 loads traded. The weekly average price is $1.6475. The barrel cheese price increased by 1.75 cents with no loads traded. The weekly average price is $1.6285. Dry whey decreased by 1.50 cents with 3 loads traded. The weekly average price is 68.25 cents. The June Cold Storage report showed American cheese inventory up 9.7 million pounds from May, totaling 822.8 million pounds. This is 2% below a year ago. Swiss cheese inventory decreased 886,000 pounds, totaling 24.0 million pounds, and was 5% above a year ago. Other cheese inventory increased 7.3 million pounds from May, totaling 586.2 million pounds. This was about even with a year ago. Total cheese inventory increased 16.2 million pounds, totaling 1.433 billion pounds. This was down 1% from a year ago.
BUTTER:
For the week, butter declined 8.25 cents with 77 loads traded. The weekly average price is $1.5410. Grade A nonfat dry milk declined 6.75 cents with 60 loads traded. The weekly average price is $1.4185. Butter inventory in June declined 3.2 million pounds from May, totaling 332.1 million pounds. This is 7% below a year ago. This indicates demand is strong and utilizing what is being produced.
OUTSIDE MARKETS SUMMARY:
December corn closed steady at $4.8750, November soybeans closed up 9.75 cents at $12.5350, and December soybean meal closed up $3.30 per ton at $335.20. September Chicago wheat closed down 18.25 cents at $6.7800. October live cattle closed up $1.13 at $222.50. September crude oil is down $2.88 per barrel at $89.31. The Dow Jones Industrial Average is up 236 points at 51,947, with the NASDAQ down 162 points at 24,976.
