July Milk Production Proved Bearish
The July Milk Production Report was bearish with a 1.5% YoY gain. All six key producing regions saw growth, with the Northeast region increasing 1.9%.
California saw the least growth of the regions, growing .5%. Number of milk cows increased 37,000 YoY and 2,000 head more than June 2020. The June Milk Production Report was revised with an increase of 59 million pounds or .3%.
Sellers have continued to push spot cheese lower in the CME Cash Dairy Product Trade. Blocks fell 8.75 cents to $1.71/lb. Barrels dropped 8.25 cents to $1.3175/lb. Butter added ¼ of a penny to $1.5225/lb. Grade A Nonfat gained ¼ of a penny to $1.0150/lb. Dry whey was unchanged at $.34/lb.
Class III futures saw further weakness today. August milk declined 33 cents to $19.51/lb. September fell 58 cents to $15.42/cwt. October tumbled 35 cents to $16.57/cwt. Class IV futures were mixed, ranging from positive 3 to negative 15.
December corn lost 2 cents to $3.3975/bushel. November soybeans added ¼ of a penny to $9.14/bushel. September Chicago Wheat increased 4.50 cents to $5.12/bushel. Fats and Feeders both saw strength. August live cattle gained 75 cents to $107.47/cwt. August feeders climbed 32 cents to $143.55/cwt. September crude oil finished 7 cents lower to $42.82/barrel.