Despite a heat wave that struck much of the country for a week during the middle part of the month, the nation's dairy cows pumped out 1.1 percent more milk in July than they did during July of 2012.
In the downscaled monthly milk production report released on Monday of this week by the National Agricultural Statistics Service, Wisconsin continued to run ahead of the national average with a 2.9-percent increase compared to July of 2012.
The state's reported milk production of 2.321 billion pounds for the month set an all-time record high for July.
Across the United States, there was a divergence in the July comparisons with most states in the Midwest and East recording increases while those in the West posted cutbacks in production.
For the top 23 milk production states, the July-July increase was 1.2 percent but the total production for the 31-day month of 15.674 billion pounds was down by .8 percent from the production on 30 days in June of this year.
California's milk production dropped by 3.5 percent in the July comparisons to a total of 3.375 billion pounds this year.
Arizona was down by 2 percent to 347 million pounds and Idaho was off by 1.1 percent to 1.174 billion pounds while Oregon slipped by .9 percent to 216 million pounds.
On the plus side, milk production in Kansas jumped by 10.8 percent to 246 million pounds this year in July.
Other significant percentage increases were 8.6 in Iowa, 7.6 in Indiana, 5.5 in both Colorado and Florida, and 5.3 (to 820 million pounds) in Texas.
Among the other top milk production states, there were increases of 3.8 percent to 546 million pounds in Washington, 3.1 percent to 766 million pounds in Michigan, and 3 percent to 442 million pounds in Ohio.
Minnesota matched Wisconsin's 2.9 percent increase with its milk production of 756 million pounds during July.
Spot Market Decline
In the daily spot market for dairy commodities on the Chicago Mercantile Exchange, prices took another hit on Wednesday of this week with Cheddar block cheese losing 3.75 cents per pound and Cheddar barrels shedding 5 cents for respective closing prices of $1.67 and $1.65 per pound.
Those prices are down by 10 and 11.5 cents per pound respectively from a week earlier. The market activity on Wednesday included two carload sales of blocks and three carload sales of barrels along with uncovered offers to sell one carload of each.
There were also two carload sales of AA butter as its spot market price gained .25-cent per pound to close at $1.3625.
With no transactions, the spot market prices for non-fat dry milk remained at $1.80 per pound for Grade A and $1.75 for Grade Extra.
With the downturn in spot market prices for Cheddar cheese this week, the Class III milk futures followed suit.
As a result, there was no longer a futures price of $18 per hundred or higher on the trading board by Wednesday of this week.
Late in the futures trading session on Wednesday, prices stood at $17.98 per hundred for August, in the $17s for the following three months, and in the $16s for all months from December 2013 through January of 2015.
Futures prices for dry whey were also in red ink territory for the final four months of 2013 in trading on Wednesday.
Prices shown on the board were between 58 and 52 cents per pound for all months from August 2013 through June of 2014.
A Class I fluid milk national base price of $19.16 per hundred has been announced for September. This is an increase of 28 cents from the August price.
On Wednesday of this week, Cooperatives Working Together announced the acceptance of a package of 17 bids from Dairy Farmers of America, Foremost Farms USA, Land O'Lakes, Darigold Cooperative, and the Maryland and Virginia Milk Producers Cooperative.
The bids were for financial assistance on the export of 2.189 million pounds of Cheddar, Gouda, and Monterey Jack cheese and 1 million pounds of butter.
Deliveries are scheduled from August-January 2014 to countries in Asia, Europe, the Middle East, and North Africa.