Heat still hindering milk production

After slipping a quarter-cent on Wednesday, cash cheese held stead on the Chicago Mercantile Exchange on Thursday. USDA Ag Marketing Service reports milk production continues to slip from heat and humidity as manufacturers are looking for loads. Some report spot prices $1.00 to $3.00 over market, some cheese makers seem to be trying to get out ahead of an expected big increase in the Class III price from July to August. Futures closes on Thursday with July at $13.74 and August at $14.92.

AMS says Florida manufacturers are scrambling to find milk to fill orders as several retail milk promotions started up. They are still shipping milk out of the Sunshine state but it dropped from 131 loads last week to 38 loads this week. Milk from Texas is moving into the Southeast to help make up for the decline in production there.

Meanwhile, production in the Southwest seems to have leveled off at what looks like the seasonal lows. Reporters in Arizona and New Mexico say cows seem to have gotten used to the weather although humidities are still high. The Pacific Northwest seems to be the only region where cows are comfortable and production is running above year-ago levels.