Higher unemployment and slower hiring triggered fears of a U.S. recession and sent global markets sharply downward. All major U.S. stock indices fell to the lowest levels since 2022, with the S&P 500 tumbling 2.6% on the day as of 3 p.m. Central. The U.S. Dollar Index also fell to eight-month lows, and crude oil plunged despite ongoing tension in the Middle East. While the market downturn has been rapid, analysts suggest the reaction is an extreme over correction.
Dairy markets lost ground today on the heels of the global market meltdown. CME blocks slipped to $1.8400 per pound, down a penny, with one lot traded. Barrels fell to $1.9100 per pound, giving up two cents. Class III milk futures also tumbled, with September futures losing 73 cents to settle at $19.72 per hundredweight. Despite the market turmoil, grain futures showed resiliency. Nearby corn rose to $3.9075 per bushel, up $0.0425, and August soybeans lifted to $10.4425, tacking on 15 cents.
Total cheese production in June decreased to 1.161 billion pounds, down 1.4% (-17.0 million pounds) year-over-year and -4.0% (-48.9 million pounds) since May, according to the latest Dairy Products report. At the same time, butter production totaled 169.2 million pounds, up 2.8% (+4.7 million pounds) on the year but down 17.3% (-35.3 million pounds) from the previous month.
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