Higher Inventories, Lower Prices
The USDA released it’s monthly cold storage report last Friday with higher inventories as the result. Total natural cheese came in at 1.386 billion lbs., up 6% from a year ago and 3% ahead of last month. Butter stocks rose 8% from a year ago and 10% from last month, respectively. There are 339 million lbs. of butter currently in warehouses around the country.
All commodities across the board were lower on Monday following reports that the Trump administration was planning tougher trade policy with China on Chinese investments in U.S. technology companies. Corn fell 7 cents, soybeans 20 cents, and wheat dropped 9-19 cents per bushel. August fat cattle was limit down, feeders declined 3 cents and lean hogs softened $1.75 per cwt.
The milk and product markets were pummeled Monday like all other markets. Cheddar barrels lost 8 cents after 23 loads traded and moved to $1.20 and ½ cents, the lowest price since July 30, 2009. Blocks dropped 4 cents to $2.25 and ½ cents. Grade A nonfat dry milk wakened 2 and ½ cents to 73 and ¾ cents per lb. on six trades. Dry whey managed to add ¼ cent to 40 cents per lb. Class III milk was down 38-50 cents in the 3rdquarter and 12-25 cents in the fourth quarter. The first half of 2019 dropped 3-7 cents. Class IV milk declined 10-20 cents in 2018.