The national all-milk weighted average price of $19.30 per hundred for milk shipped in August is an increase of 30 cents from July.
What's unusual about the prices released earlier this week is that Wisconsin's all-milk price lags the national average by 10 cents per hundred.
All-milk average prices in other top 10 production states for August include $20.80 per hundred in Pennsylvania, $20.40 in Michigan, $20.30 in New York, $19.40 in Texas, $19.30 in Minnesota, $18.50 in Idaho, $17.90 in New Mexico, and $17.80 in California.
On the combination of the slightly higher all-milk price and lower across the board costs of dairy feeds making up a 16-percent protein ration, the August milk price to feed cost ratio has arisen to 1.69. It was 1.52 in July and 1.37 in August of 2012.
Feed prices plugged into the formula were $6.02 per bushel for shelled corn (down 77 cents from July), $13.80 per bushel of soybeans (down $1.50), and $200 per ton of dry alfalfa hay (down $9).
In Wisconsin, prices for those feeds as of mid-August were $6.20 for corn, $13.50 for soybeans, $160 for a ton of dry alfalfa hay (down $35 from mid-July), and $120 per ton for other hay.
The Class III milk national base price for August was due to be announced on Thursday afternoon of this week.
On Wednesday, which was the final day of trading for the August Class III futures on the Chicago Mercantile Exchange (CME), the price stood at $17.88 per hundred.
Of the 16 months through the end of 2014, eight of them posted double digit per hundred gains in the Class III futures on Wednesday. This happened despite a lack of support from dairy commodity prices.
Those gains raised the futures prices to $18 per hundred for September and $18.15 for October. They then slip back to $17.59 for November and into the upper $16s per hundred for December through the first half of 2014 before rebounding to the lower $17s for the latter half of the year.
Quiet Spot Market
During the first three days of this week, there were no sales of Cheddar cheese, AA butter, or non-fat dry milk in the spot market on the CME.
This left the Cheddar block price at $1.7825 per pound and Cheddar barrels at $1.77.
There was some activity in the AA butter spot market on Wednesday. The price slipped by .50-cent per pound to $1.43 following an uncovered offer to sell six carloads and an unfilled bid to buy one carload.
An unfilled bid to buy one carload raised the non-fat dry milk Grade A price by .50 cent to $1.8050 per pound. The Grade Extra price remained at $1.78.
The dry whey futures prices stood at 57-58 cents per pound for the remaining months of 2013. They then slide to the lower half of the 50s for the first half of 2014.
Earlier this week, Cooperatives Working Together announced the receipt of a batch of 15 bids from Dairy Farmers of America, Foremost Farms USA, and Darigold Cooperative.
The bids were for financial assistance on the export of 1.261 million pounds of Cheddar, Gouda, and Monterey Jack cheese and 1.764 million pounds of butter.
Deliveries were scheduled until February of 2014 to countries in Asia, Europe, North Africa, and the Middle East.