ACCORDING to USDA's monthly "Milk Production" report, dairies in the 23 major dairy states produced 15.7 billion lb. of milk last month (Figure), up 2.7% from August 2012. July production, at 15.7 billion lb., was up 1.3% from the previous year.
Class III milk futures ran mostly steady with the previous week and settled at $18.14/cwt. last Thursday, down 4 cents from the previous Friday's close.
Cheese futures were slightly weaker at $1.792/lb., and butter futures were down nearly a penny to $1.4525/lb.
Cash prices have continued to improve in September, with strong demand underpinning cheese and butter prices, although market analyst Jerry Dryer noted last week that the industry is still somewhat bearish due to large inventories of cheese and butter.