# Weekly forecast – August 4, 2023 | Ceres

> Ceres raised its cheese and butter price forecasts through year-end after a sharp late-July rally, citing tight central-states milk supply and tight cream. It expects supply-driven strength to be interrupted by periodic corrections, with possible declines after new cheese capacity ramps up. NDM prices were adjusted for August and September, with less milk expected to flow to powder this fall.

- Date: 2023-08-06 · published 2023-08-06T12:00:00.000Z
- Category: market · region US · magnitude medium
- Page: https://feedsoft.ai/events/5107-weekly-forecast-august-4-2023-ceres
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Tighter milk supply and firmer cheese and butter values support higher milk pricing through the holiday season, though the forecast flags likely price corrections. Reduced milk going to NDM/SMP also tightens powder supply.

## Read by commodity

- MILK: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2023-08-08 | 5 | +25.7% | 7.4 | Ceres raised cheese and butter forecasts after a sharp late-July rally on tight central-states milk and cream supply, a supply-driven mechanism that supports higher Class III futures. |

## Sources

- ceresdrm.com: https://ceresdrm.com/weekly-forecast-august-4-2023/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.