Soybeans are expected to be a near record. Despite good demand, generally at home, and improved export demand for grains, prices were lower because of the expected record production. Milk supplies in the East and South are following seasonal patterns. Lower supplies in some areas are exacerbated by drought conditions. Drought and lower milk prices are causing some milk producers to quit completely, causing localized milk supply problems.
Demand is steady to improving.
Some schools are starting back in the much of the South in early August. Cream prices and condensed Class III prices are edging higher because of localized need. Vermont s legislature prohibited the state s cheese plants from using imported dry MPC, and these cheese makers find themselves at a competitive disadvantage with cheese makers in other states. A lot of Central states milk is flowing South to cover seasonal shortfalls. Under the new order regulations, milk that was considered spot shipments is now pooled on other orders.