Monday Morning Dairy Market Update - Trade Likely Light, Directionless

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 5 Lower
Soybean Futures:	4 to 5 Lower
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	8 to 9 Lower

MILK:

There is not much change expected in the market anytime soon. Fundamentals remain similar to what they have been over the past months. The weather has had some impact on milk production, but mainly it has been confined to finishing the spring flush milk volume. Butterfat has been impacted to some extent, but it remains above the level of a year ago. Milk production has remained above last year and is expected to remain higher through the rest of the year. Trading activity is expected to be light ahead of spot trading.

CHEESE:

The upside price potential in cheese is likely limited. Strong cheese output is keeping pace with demand. Plants continue to sell cheese on the spot market to limit building inventory. Cheese production later this year is expected to keep pace with demand without tightening supply.

BUTTER:

The large volume of butter traded on the spot market last week keeps demand satisfied. Plants are avoiding building inventory. Buyers are purchasing for immediate needs and to increase ownership for later demand. Strong butter production is keeping the market balanced. Strong demand should support the price.

Friday Closing Dairy Market Update - Loads and Loads of Butter

GENERAL OVERVIEW:

Butter traded 161 loads this week as prices slipped on average 2.6 cents. Buyers flocked to the table to fill inventory before summer demand hits as inventories usually tend to slip this time of year.

MILK:

Class III futures slowly moved lower this week with the June contract dipping below $16. Dry whey futures traded sideways with less than one cent move from the high settlement to the low. Class IV futures continued to slip lower this week after a disappointing week last week. The USDA released the WASDE report Thursday with expectations of milk production to continue to grow into next year. Luckily, the market seems to be able to consume what we produce despite the growing supply. Exports are strong especially in non-fluid products.

AVERAGE CLASS III PRICES:

3 Month:	$16.48
6 Month:	$17.20
9 Month:	$17.34
12 Month:	$17.38

CHEESE:

For the week, blocks gained 0.25 cent with 21 loads traded. The weekly average price is $1.4815. Barrels fell 6 cents from Monday to Friday with 4 loads traded. However, the weekly average increased from last week due to such a strong start to the week on Monday. The weekly average price is $1.4540. Dry whey increased 1 cent with 4 loads traded. The weekly average price is 67.70 cents.

BUTTER:

For the week, butter decreased 3.25 cents with 161 loads traded. Demand has been substantial in the last few weeks. The weekly average price is $1.6665. Grade A nonfat dry milk declined 11.25 cents with 51 loads traded. The weekly average price is $2.1160.

OUTSIDE MARKETS SUMMARY:

July corn closed up 1.00 cent per bushel at $4.1275, July soybeans closed down 1.5 cents at $11.1350, and July soybean meal closed down $0.04 per ton at $301.30. July Chicago wheat closed down 2.25 cents at $5.8450. August live cattle closed down $2.25 at $241.175. July crude oil is down $3.42 per barrel at $84.29. The Dow Jones Industrial Average is up 353 points at 51,202, with the NASDAQ up 79 points at 25,888.

Friday Midday Dairy Market Summary - Butter Buyers Came to the Table

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	1 Higher
SOYBEAN MEAL:	$0.02 Higher
LIVE CATTLE:	$1.75 Lower
DOW JONES:	343 Points Higher
NASDAQ:	57 Points Higher
CRUDE OIL:	$3.03 Lower

MIDDAY MARKET UPDATE:

The block cheese price decreased 0.25 cents to close at $1.4875 with 2 loads traded. The barrel cheese price remained unchanged at $1.42 with no loads traded. The dry whey price closed unchanged at 68.00 cents with no loads traded. Class III futures are mixed at 9 cents lower to 5 cents higher. The butter price increased 2.75 cents to close at $1.6675 with 60 loads traded. Grade A nonfat dry milk decreased 3 cents to close at $1.7850 with 5 loads traded. Class IV futures are steady to 25 cents higher. Butter futures are 0.075 cents lower to 2.15 cents higher. Dry whey futures are 0.375 cents lower to 0.50 cent higher. Cheese futures are 0.4 cent lower to 0.2 cents higher.