September 11

9/11 - Dairy markets have continued to strengthen on tightening milk supplies. July milk production, down 0.5%, was below year-ago levels for the 2nd straight month. Class III milk futures are $18.48/cwt (9/8) after averaging $13.87 in July and $17.03 in Aug. Cheese in cold storage was 2.2% below a year ago in July. Total cheese production was 0.7% below a year ago in July; cheddar output was down 2.6%. After averaging $1.40/lb in July and $1.62 in Aug, CME block cheese, at $1.9250/lb (9/8), finally appears to be easing a bit after surging to highs above $2.00 in mid-Aug. Butter in cold storage in July was down 5.2% from a month ago but is still above year-ago levels. Monthly butter output also declined but was 3.5% above a year-ago. CME butter, at $2.68/lb (9/8), has moved steadily higher this summer, fueled by memories of shortages and a $3.26 market top (10/6/22) ahead of Thanksgiving last year.