August 19, 2020

July Milk Production Proved Bearish

 |  By: Know Your Market

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.