The Agriculture Department announced the July Federal order Class III benchmark milk price at $14.10 per hundredweight, down $1.11 from June, $1.35 below July 2017, and the lowest Class III since February 2018. It equates to $1.21 per gallon, down from $1.31 a month ago and $1.33 a year ago. The seven month Class III average is at $14.37, down from $16.02 at this time a year ago and compares to $13.73 in 2016. Wednesday’s Class III futures settlements portend an August price at $14.86; September, $15.65; October, $16.33; November, $16.37; and December at $16.15.
The July Class IV price is $14.14, down 77 cents from June, $2.46 below a year ago, and the lowest Class IV since April 2018. Its seven-month average is at $13.73, down from $15.30 a year ago and compares to $13.42 in 2016. The four-week USDA-surveyed cheese price used in calculating the month’s Class milk prices averaged $1.4868 per pound, down 12.8 cents from June. Butter averaged $2.2596, down 11.6 cents. Nonfat dry milk averaged 78.24 cents per pound, down 3.3 cents, and dry whey averaged 33.72 cents per pound, up 2.9 cents from June.
California down 34 cents
The California Department of Food and Agriculture announed its July Class 4b cheese milk price at $14.09 per cwt., down 34 cents from June, $1.20 below a year ago, a penny below the FO Class III price (smallest differential since February’s 2-cents) and the lowest 4b price since March 2018. Its seven-month average is at $14.06, down from $15.14 a year ago and compares $13.02 in 2016.
The Class 4a butter-powder milk price is $13.72, down 50 cents from June and $2.69 below a year ago. Its seven-month average is at $13.42, down from $15.07 a year ago and compares to $13.11 in 2016.
Courtesy Mielke Market Weekly
