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Of Cows and Markets
By E. W. Lang

Extreme heat consumed most of the Unites States these past few days, and is scheduled for a couple more.  Milk production, with the exception of the Pacific north west and mountain states is notably lower, owing to temperature and humidity.  Spot loads of milk, however, are running $1.25 below Class, to 75 cents over.  One year ago spots were trading four to six bits higher.  In Idaho, according to USDA Dairy Market News, orphaned loads have been as low as $4.75 under Class IV.

Barrel cheese ended the week at $1.70 per lb., down 3.5 cents over the five days.  Block cheese ended at $1.78 down less than one cent.  Butter at $2.40 lost one-and-one half cent.

Class III Milk Futures average $17.68 for the rest of 2019 and a short $17 for the first half of 2020.  That's about a 15 cent increase. on average, for the next 18 trading months, compared to a week ago.  Sept. and Oct. ended the week at $17.99 per cwt.,  that's 30 cents over last week.  

Milk-Feed Indices run a historically high $9.64 per cwt, for September, to $8.50 for all of next year.  The 10 year average milk-feed index is $7.73 per cwt.  

Corn and beans lost ground this week, and contributed to a 45 cent increase in milk-feed index average of about $9.35 for the rest of this year. 

Milk cow prices seem to be steady.  Hay at auction in Iowa remains steady.  My drive through the Wisconsin dairy belt this week showed some corn in real trouble.  I suspect some fields may have to be harvested with a disc bine and hay head, this if extreme heat and dry weather governs, following the extreme rain and cold temps prior to a couple weeks ago.  

Common stocks lost a little ground on Wall Street this week.  The German economy is a lead news item of late.  Deutsche Bank is in a pickle and German interest rates are in negative territory.  I suspect this dynamic, along with ongoing trade battles, is a threat to other economies, particularly in light of 12 years of generally uninterrupted gains on Wall Street.
The author identifies as a farmer near Brooklyn, Iowa
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