The weather generally remained warmer than average through the report week, as much as 4° Fahrenheit above normal. The warmest temperatures were felt from Texas up through the Midwest, with heat and humidity moving east through the report week.
It was another higher day for spot markets, as cheddar blocks pushed up 4.5¢ and barrels rallied 2¢. Tightness in the marketplace has caused quite the stir in the spot markets, and many are wondering where the sellers went?
With USDA’s announcement of June numbers, the average margin for the May-June pay period is $7.995/cwt., meaning only those producers insured at the $8.00/cwt. level will see a small indemnity payment, and even that will be reduced by federal budget sequestration.
While the outlook for U.S. milk prices is bearish, quarterly average prices paid for replacement dairy cows maintained strength in July. And, estimated June 2015 cull cow prices averaged $113.00/cwt., down just $1.00/cwt. from May.