Wednesday Closing Dairy Market Update - Class III Futures Steady to Lower

MILK

Class III milk futures eliminated much of the gains of Tuesday. This keeps traders cautious and trading short term to scalp the market for a profit. There is no evidence of long-term price direction. There is more evidence of milk production slowing in many areas of the country. However, even with this slowing, milk supplies remain plentiful. USDA released the June Federal Order milk prices Wednesday. The Class II price is $16.66, up $0.44 from May. The Class III price is $17.21, down $1.75 from the previous month. The Class IV price is $16.35, up $0.19 from May. The income over feed for May is $6.89 and $0.05 lower than April. The average corn price was $5.91, up $0.60 from April. The average alfalfa hay price was $187 per ton, up $7 from May. The average premium/supreme alfalfa hay price was $226 per ton, up $15 per ton from the previous month. This put the alfalfa blend price at $210. The central Illinois soybean meal price was $421.03 per ton, an increase of $7.67 per ton from the previous month. The all-milk price was $19.20, an increase of $0.80 per cwt from April. Those who chose the $9.50 coverage level for the Dairy Margin Coverage program will receive a check for $2.61 per cwt.

AVERAGE CLASS III PRICES

3 Month:	$17.13
6 Month:	$17.58
9 Month:	$17.60
12 Month:	$17.62

CHEESE

Cheese production remains active with some concern being voiced over the growth of inventory, primarily in the Midwest. Milk production has slowed, but supply remains plentiful. Discounted milk continues to remain available with the discount as much as $6 under Class in some instances. Demand is steady with orders coming in.

BUTTER

There are reports that churns will be running through the holiday period in order to keep up with demand as well as utilize available cream. Butter has been moving a bit better through retail channels due to stores featuring butter through special promotions to increase store traffic.

OUTSIDE MARKETS SUMMARY

July corn jumped 25.50 cents, closing at $7.20. July soybeans gained 90.25 cents, closing at $14.50, with July soybean meal up $27.10 per ton, closing at $375.50. July wheat jumped 31.75 cents, closing at $6.7150. August live cattle gained $0.80, ending at $122.75. August crude oil gained $0.49, ending at $73.47 per barrel. The Dow gained 210 points, closing at 34,503, while the NASDAQ declined 24 points, closing at 14,504.

Wednesday Midday Dairy Market Summary - Barrels Slip Back

Block cheese price increased a penny to $1.5525 with no loads traded. Only one buyer showed up to the market with no sellers to be found. Barrel cheese price slipped 0.25 cent to $1.5025 $1.74$1.74 with one load traded. Butter price declined 2.50 cents closing at $1.74 with 6 loads traded. Grade A nonfat dry milk declined a penny to $1.26 with one load traded. Dry whey price declined 0.50 cent closing at 56 cents. The weakness of barrels and the decline of dry whey sets a bearish tone for the market. Class III futures are 22 cents lower to 1 cent higher. The October contract shows the greatest loss. Class IV futures are steady to 5 cents lower. Butter futures are 1.50 cents lower to 0.50 cent higher. Dry whey futures are 0.37 cent to 0.50 cent lower. The acreage report showed planted acreage at 92.70 million acres (ma) for corn and 87.60 ma for soybeans. Both of these were bullish, pushing futures substantially higher and setting the stage for a possible return to the highs. USDA will release the May Agricultural Prices report and the June Federal order class prices Wednesday afternoon.

Wednesday Morning Dairy Market Update - Traders Uncertain Over Continued Price Strength

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	7 to 10 Lower
Soybean Futures:	2 to 8 Lower
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	2 to 4 Lower

MILK:

Class III milk futures were able post nice gains Tuesday following the increase of cheese prices. The market might be in the early stages of a price retracement, but that will need to be supported by underlying cash. USDA will release the June Federal Order class prices Wednesday. They will also release the May Agricultural Prices report. This report will provide average prices of many commodities and will show the average prices for corn, alfalfa hay and the All-milk price prices used in the calculation of income over feed. The soybean meal average price is derived from a separate report. The resulting income over feed number will determine whether there will be a payment under the Dairy Margin Coverage program. USDA will also release the Acreage and Quarterly Grain Stocks reports, which may have a significant impact on feed prices.

CHEESE:

Traders remain cautious over just how much strength cheese price may have in the near term. Price increases have been short-lived so far this year, and it will take a steady trend higher before changing that pattern. Demand will need to improve in order to keep supply from building.

BUTTER:

The inability of price to hold at the higher level it moved to during spot trading Tuesday does make the market a bit suspect over much upside strength. However, it also did indicate that buying interest was strong and able to absorb the loads that were offered to the market. Supply and demand seem to be balanced.

Tuesday Closing Dairy Market Update - Milk Futures Post Nice Close

MILK

August Class III futures moved back above $17 with a close of $17.22, a gain of 40 cents. This has been a long time in coming, but the proof will be if the market will be able to maintain this gain and hopefully move higher. Traders will remain cautious due to a pattern of a rebound of prices being short-lived. We know that this will change at some point, but whether this is the time is unclear at present. Tuesday was the last day to trade June dairy futures and options. Traders anticipate a Class III price of $17.19 and a Class IV price of $16.39. USDA will release the Federal Order prices Wednesday. July is currently carrying a discount to the expected June prices. However, it may not be discounted very long if the recent price strength is able to hold. Upside potential may be limited due to strong milk production, but an increase in demand would be beneficial. Buyers may see the need to step up and purchase for upcoming demand and to take advantage of current prices. USDA will release the Acreage and Quarterly Stocks reports Wednesday morning, which may provide some direction for grain futures. They will also release the May Agricultural Prices report Wednesday afternoon, which will provide prices used in the calculation of income over feed.

AVERAGE CLASS III PRICES

3 Month:	$17.13
6 Month:	$17.57
9 Month:	$17.62
12 Month:	$17.64

CHEESE

It certainly was a good sign that cheese prices moved higher. The fact that barrels moved up on unfilled bids without any sellers does bode well that there could be further upside price potential. The concern is that it could be short-lived due to a lot of milk available for processing. However, at current prices, buyers may be willing to step up and purchase more aggressively for future demand.

BUTTER

The volume of butter that came to the spot market Tuesday was enough to satisfy the early aggressive demand, eventually resulting in price declining. The fact that price only declined 0.25 cent with 15 loads traded was positive. Futures show limited increases from month to month but an increase through the end of the year. They do not show any price near $2 in any contracts as far out as they trade. This could change as time moves forward, but for now, it shows limited potential.

OUTSIDE MARKETS SUMMARY

July corn jumped 19 cents, closing at $6.9450. July soybeans gained 2.75 cents, ending at $13.5975, with July soybean meal down $3.20 per ton, closing at $348.40. July wheat declined 6.25 cents, ending at $6.3975. June live cattle gained $0.45, ending at $122.55. July crude oil gained $0.07, ending at $72.98 per barrel. The Dow gained 9 points, closing at 34,292, while the NASDAQ gained 28 points, closing at 14,528.

Tuesday Midday Dairy Market Summary - Cheese Gains

Block cheese price increased 2.75 cents, closing at $1.5425 with only one load traded. Barrel cheese price increased 2 cents, closing at $1.5050. This added some strength to Class III futures, pushing prices higher. Barrels had four unfilled bids remaining at the close, which would suggest continued price support. There were no unfilled bids or uncovered offers remaining for blocks. Butter price initially moved higher, posting a gain of 3 cents before price fell back to close 0.25 cent lower with 15 loads traded. Grade A nonfat dry milk price declined a penny, closing at $1.27 with three loads traded. Dry whey price declined 1.50 cents, ending at 56.50 cents with no loads traded. Class III futures are 4 to 38 cents higher with August showing the greatest gain. Class IV futures are unchanged to 9 cents higher. Butter futures are 0.05 cent lower to 0.85 cent higher. Dry whey futures are 0.27 to 0.47 cent higher. Tuesday is the last trading day for dairy futures and options with the June Federal Order prices to be announced Wednesday.

Dairy prices choppy

CME dairy traders had to weigh data from last week’s May Milk Production and Cold Storage reports, plus the weather, as the end of June Dairy Month approaches.

The Cheddar blocks started last week falling to $1.4725 per pound but closed Friday at $1.49, down a quarter-cent on the week and $1.0850 below a year ago.

After plunging 13 cents the previous week, the barrels rolled to $1.47 per pound last Tuesday, lowest since March 26, climbed back to $1.50 Thursday, but also finished Friday at $1.49, down 5.25 cents on the week, 91 cents below a year ago, but no longer atop the blocks. There were 4 sales of block reported on the week and 24 of barrel.

The blocks were up 2.50 cents Monday on a trade and added 2.75 cents Tuesday on a trade, hitting $1.5425, highest since May 27.

The barrels eased back 0.50 cents Monday, with 13 cars exchanging hands, but gained 2 cents Tuesday on 4 unfilled bids, hitting $1.5050 per pound, a more normal 3.75 cents below the blocks.

Any expectations of lighter milk supplies in the Midwest due to the heat are yet to be met, says Dairy Market News, and cheesemakers reported even steeper discounts on spot milk. Cheese output is active but demand is mixed. Inventories are growing and buyers “see the near-term writing on the wall, as market prices continue to struggle,” writes DMN, but a restoration of the block-over-barrel price is viewed as an indicator of stability.

Demand for cheese in the West was steady to lower across both foodservice and retail markets. Contacts reported that pricing remains favorable in international markets. Milk is plentiful in the region, allowing producers to run full schedules, but delays in transportation due to a shortage of truck drivers is, reportedly, causing warehouse inventories to build, according to DMN.

Spot butter fell to a Friday close at $1.7175 per pound, 6.75 cents lower on the week and 4.75 cents below a year ago, with 14 cars exchanging hands.

Monday’s butter jumped a nickel on 4 sales but then gave back 0.25 cents Tuesday, with 15 loads finding new homes, and slipping to $1.7650.

Central butter production remains steady though cream availability is spottier and Western cream availability is tightening quite quickly, according to some. Retail butter sales are in their early summer lull, but foodservice interest remains steady.

Cream is available in the West. Ice cream production is flat to strong but butter plants are receiving steady supplies of cream. Butter output is seasonally active. Some report that supply chain issues are driving up prices of packaging items, like boxes and bags. Butter makers are not happy absorbing the extra costs but the supply chain snags are not reported to be disrupting production. Inventories are growing and ready for fall demand, says DMN. Retail sales are soft but steady and foodservice demand remains strong.

Grade A Nonfat dry milk closed Friday at $1.2650 per pound, unchanged on the week but 24.50 cents above a year ago; 19 sales were reported last week.

The powder was up 1.50 cents Monday but fell back a penny Tuesday, to $1.27.

Dry whey saw a Friday finish at 57.75 cents per pound, down 3.25 cents on the week but 26.50 cents above a year ago, with 2 sales reported for the week.

Monday’s whey was up 0.25 cents but it lost 1.50 cents Tuesday, slipping to 56.50 cents per pound, lowest since March 1.

Western weather woes

Record breaking blistering heat is covering the Pacific Northwest and lower mainland of British Columbia, Canada, this week, causing temperatures to soar over 100 degrees, a rare sight for this part of the USA, and one termed a “heat dome” seen once every 1,000 years. The heat extends south into Oregon and California and is drawing attention to what its effects will be on the dairy industry, especially as it awaits Wednesday afternoon’s Grain Stocks report.

StoneX Dairy reported in its June 28 Early Morning Update that “heavy rains fell over the weekend from the southern Plains (Oklahoma and Texas) up through Missouri, Illinois and the northeastern Corn Belt; some decent amounts fell in northern Iowa and southern Minnesota as well, into Wisconsin, though the lightest coverage again came for the Dakotas and western Minnesota.” Unfortunately the rains did not extend into the much-needed areas in the northeast belt where moisture deficits are higher.

Culling down

Dairy cow culling dropped below the previous month and year in May. The USDA’s latest Livestock Slaughter report shows an estimated 223,400 head were sent to slaughter under federal inspection, down 34,100 head from April and 9,900 or 4.2% below May 2020. Culling in the first five months of 2021 totaled 1.3 million head, down 39,700 or 2.9% from the same period a year ago.

In the week ending June 12, 52,600 dairy cows were sent to slaughter, up 6,100 from the previous week and 700 or 1.3% above that week a year ago.

Abundant supply, demand

There is plenty of uncertainty in the markets and even as concern was mounting in the U.S. over growing inflation, the U.S. dollar strengthened considerably, which is not a good sign for exports, especially powder.

Milk production typically peaks at this time of year but StoneX reminds us that component levels typically fall. Components are indeed following seasonal trends but “we are seeing levels at a surplus to where they stood at this time over the last couple of years. High volume as well as higher than normal component percentages means we can stretch an already ample supply of milk even further to meet production demands.”

Thankfully, consumers are chewing through a lot of dairy products. Matt Gould, editor and analyst of the Dairy and Food Market Analyst, reported details in the June 21 "Dairy Radio Now" broadcast, crediting foodservice sales shooting higher as we reopened our country from the COVID-driven disaster of a year ago, even though retail sales have fallen some. Global sales also did well, he said, in part from Asian countries and their belief that dairy products help improve immunity.

Disappearance comparisons to a year ago may seem a little out of whack, he said, because last year people were going to grocery stores instead of restaurants but, starting with butter, in the three months ending in April, sales were up about 2% from a year ago and up 13% compared to two years ago.

Cheese had a similar story. American type cheese was up 8%, compared to a year ago and up 6% from two years ago as restaurants were reopening and stocking up on dairy products.

At the same time, U.S. exports have been phenomenal, seeing the highest levels in years, if not record highs, on whey and milk powder. Whey exports the past three months were up 28% from a year ago, as was skim milk powder, he said.

From: Capital Press

Tuesday Morning Dairy Market Update - Milk Futures Show Strength

OPENING CALLS:

Class III Milk Futures:	10 to 15 Higher
Class IV Milk Futures:	Steady to 5 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 4 Lower
Soybean Futures:	2 to 6 Lower
Soybean Meal Futures:	$3 to $4 Lower
Wheat Futures:	1 to 3 Lower

MILK:

Milk futures struggled to post gains Monday despite the strength of underlying cash in all categories except barrels. However, late strength continued in the overnight trade with contracts posing double-digit gains. This is a welcome sight as the market has been under substantial pressure for quite some time. There is still plenty of milk out there keeping plants full, but lower prices may stimulate consumer buying thereby increasing demand. Buyers of dairy products may become more active as they look forward to upcoming demand and current low prices. It makes sense to start buying to take advantage of these prices.

CHEESE:

Block cheese price increased Monday, but that was a small consolation compared to where price current is. However, it did move price back to the highest level it has been over the past month. This should be considered a victory. The market has a long way to go to where it was in spring. Further gains are expected Tuesday.

BUTTER:

The price increase Monday eliminated much of the loss of last week but was not enough to change the trend. There is strong demand from the food service industry and the export market, but slower demand from the retail market. There are reports that retailers are featuring butter and a loss leader to bring consumers into the stores, which could help move more product.

Monday Closing Dairy Market Update - Traders Need More Confirmation of Support

MILK

Milk futures closed mixed, but continued electronic trading after milk futures were settled showed further strength with July, August and September posting double-digit gains. It will be interesting to see if this carries through in overnight trading. It certainly would be welcomed to see a significant price retracement after the freefall the market has been experiencing. However, there is not much to support fundamentally at present. Continued strong export demand will go a long way in helping to move more product and keep inventory from building. Some cheese manufacturers have indicated they believe the current discounted milk of $4 to $6 under class that is available in the spot market might be here to stay for much of the summer due to the heavy supply of milk. Tuesday is the last day to trade June dairy futures and options with the federal order prices to be announced on Wednesday.

AVERAGE CLASS III PRICES

3 Month:	$16.93
6 Month:	$17.38
9 Month:	$17.48
12 Month:	$17.53

CHEESE

The inability of barrel cheese price to hold the gains during spot trading is a concern over price strength. Barrel has been in a tighter supply position for a period but has recently seen more becoming available to the market. This is not an indication of supply backing up in the market due to slower demand but the fact that production is strong, increasing supply being made available to the market. Manufacturers want to move product to the market as quickly as possible rather than hold onto and build inventory.

BUTTER

Price made a nice bounce Monday, but that may again be all it is. Price moves daily and business done according to orders is the desire to increase inventory for later demand. Cream supply continues to remain ample for manufacturing leaving production steady. It reported that retail sales are somewhat soft.

OUTSIDE MARKETS SUMMARY

July corn jumped 39 cents, closing at $6.7550. July soybeans gained 27.25 cents, ending at $13.57, with July soybean meal up $4.40 per ton, closing at $351.60. July wheat gained 9 cents, ending at $6.46. June live cattle declined $0.72, closing at $122.10. July crude oil fell $1.14, closing at $72.91 per barrel. The Dow lost 151 points, closing at 34,283, while the NASDAQ gained 140 points, closing at 14,501.

Monday Midday Dairy Market Summary - Barrels Unable to Hold Gains

Block cheese price gained 2.50 cents closing at $1.5150 with one load traded. That load traded at the high of the day, setting the closing price. Barrels declined 0.50 cent closing at $1.4850 with 13 loads traded. Price initially moved 1.50 cents higher before selling pressure pushed price back down into the close. There have been 31 loads of barrels traded over the past two trading days. It is positive that these loads were absorbed by buyers with only a decline of 1.50 cents. The concern is that buyers are able to pick up a lot of cheese without having the chase the market. Butter price gained 5 cents closing at $1.7675 with 4 loads traded. Grade A nonfat dry milk gained 1.50 cents ending at $1.28 with 5 loads traded. Dry whey price increased 0.25 cent closing at 58 cents with one load traded. Class III futures are mixed from 5 cents lower to 16 cents higher with August showing the greatest gain. Class IV futures are 14 cents higher. Butter futures are 1.00 cent to 1.97 cents higher. Dry whey futures are 0.12 cent lower to 0.30 cent higher.

Monday Morning Dairy Market Update - Overnight Markets Show No Direction

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 4 Higher
Soybean Futures:	10 to 15 Higher
Soybean Meal Futures:	$2 to $3 Higher
Wheat Futures:	8 to 12 Higher

MILK:

There is certainly hope that that milk futures will find a bottom and retrace in price to some extent. The decline has nearly been relentless as underlying cash has provided no solid support. The path of least resistance has been down with the October and November Class III contracts holding on to the $18.00 level. Plentiful milk supply is keeping manufacturers busy and the market supplied. This eliminates any concern over supply to satisfy demand. Hot weather in the Northwest will impact milk production from that region, but that will have limited impact on overall production. The weather pattern that has been producing rains throughout much of the Corn Belt has impacted gain futures significantly, which has reduced feed prices. Crop conditions later Monday are expected to show an improvement over the past week, keeping pressure on grain prices.

CHEESE:

Cheese continues to come to the spot market, leaving buyers purchasing on an as-needed basis. Some is being purchased for inventory for upcoming demand and to build aging programs. Buyers have not had to be aggressive as they see no need to chase the market. Demand will need to increase substantially more than it is, or milk production will need to decline in order to move prices significantly higher.

BUTTER:

Price is having a difficult time finding support now that it has moved out of the range it had been in for a period of time. However, price is not falling apart due to strong domestic and international demand. Current production is meeting demand and then some as inventory is still increasing and remains higher than a year ago. Price will remain choppy.

Friday Closing Dairy Market Update - End of a Negative Week

MILK:

The slightly higher close in some milk contracts provides little consolation to those who have been bullish on the market. Losses for the week were steep and continued to mount until Friday. The minor gains Friday were likely the result of positioning for the weekend and not any real concern over holding positions through the weekend. Overall milk production is steady to lower in some cases, while at the same time plants indicate milk receipts remain very strong. There have been some reports of a shortage of truck drivers for hauling milk and cream to locations and plants. The milk production reports showed strong milk output and increasing cow numbers. The monthly slaughter report showed lower culling, indicating the desire of farms to keep barns full and production strong. Higher grain prices have had little to no impact on the desire to produce milk.

AVERAGE CLASS III PRICES:

3 Month:	$16.82
6 Month:	$17.36
9 Month:	$17.46
12 Month:	$17.51

CHEESE:

For the week, blocks declined 0.25 cent with only four loads traded. Barrels declined 5.25 cents, ending with 24 loads traded. Dry whey declined 3.25 cents with two loads traded. Cheese inventory grew according to the monthly Cold Storage report, but inventory was not burdensome. However, it is large enough along with strong cheese production to keep supply readily available to the market. Spot milk prices were again reported from $4.00 to $6.00 under class this week.

BUTTER:

Butter futures followed the other dairy markets lower as underlying cash price declined. Supplies of milk and cream are readily available for churning, keeping current demand supplied. Retail demand is considered soft and running along seasonal lines. This is putting the slight pressure on cash price as sellers want to continue to move supply to the market rather than have inventories build. For the week, butter declined 6.75 cents with 14 loads traded. Grade A nonfat dry milk remained unchanged with 19 loads traded.

OUTSIDE MARKETS SUMMARY:

July corn fell 16.75 cents, closing at $6.3650. July soybeans fell 41.50 cents, closing at $13.2975 with July soybean meal $1.40 per ton higher, closing at $347.20. July wheat fell 14.25 cents closing at $6.37. June live cattle closed unchanged at $122.82. July crude oil gained $0.75, ending at $74.05 per barrel. The DOW gained 237 points, ending at 34,434 with the NASDAQ slipping 9 points, closing at 14,360.

Friday Midday Dairy Market Summary - Barrels Erase Thursday's Gain

Block cheese price remained unchanged at $1.49 with one load traded. Barrel cheese price declined a penny, closing at $1.49 with 18 loads traded. It was positive that the volume of loads offered did not push price any lower with buyers ready and willing to pick up what was offered. There were five unfilled still remaining at the close below the market. Butter price remained unchanged at $1.7175 with no loads traded. Grade A nonfat dry milk price increased 0.75 cents, closing at $1.2650 with three loads traded. Dry whey price remained unchanged at 57.75 with no loads traded. Class III futures are 2 cents lower to 6 cents higher. Class IV futures are 9 cents lower to 18 cents higher. Butter futures are 0.72 to 2.00 cents higher. Dry whey futures are 0.45 cent lower to 1.72 cents higher.

Friday Morning Dairy Market Update - Futures Ready for a Bounce

OPENING CALLS:

Class III Milk Futures:	Steady to 10 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Steady to 1 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Mixed
Soybean Futures:	5 to 10 Higher
Soybean Meal Futures:	Steady to $1 Lower
Wheat Futures:	2 to 4 Higher

MILK:

There has been continued pressure on Class III futures due to the inability of underlying cash to find any stability. The market is ripe for a price retracement, but as long as underlying cash does not find support, neither will milk futures. There has been good demand both domestically and internationally, but supply continues to remain heavy. There is sufficient milk for those who need it. Most plants still indicate they are running at capacity with no real end in sight. Spot milk continues to carry a discount to class. The monthly slaughter report shows the intention of farms to milk as many cows as they can with May showing the lowest monthly slaughter since July 2016.

CHEESE:

Cheese continues to be offered on the spot market as plants desire to move cheese as quickly as possible to limit inventory buildup. There are some plants that have indicated they continue to carry more cheese than they would like and are trying to move it to the market. Upside price potential seems limited unless milk supply declines.

BUTTER:

After holding well for quite some time, butter price now seems to be eroding, and there is no indication as to a level of support. Export demand has been very strong, but production has been sufficient to meet that demand as well as domestic demand. Inventory is still 7% higher than it was a year ago, leaving supply sufficient for demand. Further weakness is expected.

Thursday Closing Dairy Market Update - Dairy Cattle Slaughter Declines

MILK

Milk futures were hit significantly Thursday as traders remain cautious over upside price potential. The news of new requirements for the certification of exports of U.S. dairy and composite food products that the European Union had already decided on earlier came back into the spotlight as some congressional leaders are urging the EU to reconsider these requirements in order to eliminate the disruption that they would create in the market. These new requirements are slated to be implemented later this summer. We only hope that this action will be delayed to eliminate the barriers that will hinder trade. This may have had some impact on the markets Thursday. Dairy cattle slaughter in May declined substantially, totaling 223,400, a drop of 34,100 head from April. This was down 9,900 head from May 2020. This clearly shows the interest of farms to hold onto cattle. Now that grain prices have been decreasing, the concern or urgency over feed prices and feed supply is not quite as great as it had been. Milk supply is expected to continue to remain strong.

AVERAGE CLASS III PRICES

3 Month:	$16.79
6 Month:	$17.31
9 Month:	$17.44
12 Month:	$17.50

CHEESE

Some areas report that demand for cheese is steady to lower this week both for food service and retail outlets. It is a bit surprising that it would be lower for the food service industry. However, the explanation could be that demand could be lower due to supply levels being filled, leaving less reason to purchase at present. Supply will just need to be maintained. Plants are trying to sell cheese as quickly as possible to keep inventory from building.

BUTTER

Price showed further weakness Thursday, moving price lower after breaking below the bottom of the sideways price range it had been in for a period. Production remains steady as cream is available to the market. There are a few reports that cream supplies are a little lighter, but there is currently no tightness of supply keeping churns active and supply readily available.

OUTSIDE MARKETS SUMMARY

July corn fell 11 cents, closing at $6.5325. July soybeans fell 13.75 cents, ending at $13.7125, with July soybean meal down $8.40 per ton, closing at $345.80. July wheat declined 10 cents, ending at $6.5125. June live cattle gained $0.32, closing at $122.82. July crude oil gained $0.22, ending at $73.30 per barrel. The Dow gained 323 points, closing at 34,197, while the NASDAQ gained 98 points, closing at 14,370.

Thursday Midday Dairy Market Summary - Milk Futures Continue Lower

Block cheese price remained steady at $1.49 with no loads traded. Barrel cheese price gained a penny closing at $1.50 with no loads traded. Three unfilled bids remained for barrels at the close, which could indicate further gains possible. Butter price declined 1.25 cents closing at $1.7175 with no loads traded. Grade A nonfat dry milk price remained unchanged at $1.2575 with 2 loads traded. Dry whey price declined 1.75 cents closing at 57.75 cents with no loads traded. This moves the dry whey price down to the lowest level since March 3rd. Class III futures are 2 cents to 32 cents lower with September showing the greatest loss. Class IV futures are 6 cents to 25 cents lower. Butter futures are 0.77 cent to 3.00 cents lower. Dry whey futures are 1.00 cent to 2.67 cents lower. USDA will release the May Livestock Slaughter report Thursday.

Fluid Milk and Cream - Western U.S. Report 25

The heatwaves surging through the West have introduced record high temperatures to multiple     states. The heat coincides with, and exacerbates, record drought throughout the region.     Despite these hot, arid conditions, contacts are not reporting precipitous drops in milk.

June milk production is trending up year-over-year in California. Output is steady this week     and following seasonal patterns. Class I demand is steady to lower. There are some reports     of diversions this week in response to both plant equipment issues and scheduled downtime.

Arizona milk yield is declining. Handlers report that volumes of additional milk from out of     state are beginning to decrease as well. Bottling orders are steady. 

Milk output is decreasing a little in New Mexico. Bottling orders are level. Class II demand is up slightly. Some contacts say rising fuel costs and tight driver availability are changing the hauling market; a few related delivery issues have been reported, but so far, the issues are said to be minor. Balancing plants are active but less stressed than in recent weeks. Holdovers have been reduced to more manageable numbers. 

Milk is plentiful in the Pacific Northwest. Overbase programs are in place to help manage milk supplies, but the abundance is amplified by staffing shortages, high freight costs, limited tanker availability, missed delivery appointments, port delays, and shrinking warehouse space. Some contacts are hopeful that high temps will help staunch the flow of milk soon. Class I demand is lower, and Class II and Class III orders are steady. 

Milk production varies throughout the mountain states of Idaho, Utah, and Colorado. Output is strong in Idaho, where contacts report discounted spot loads can be found at up to $5.50 under Class IV. Further south, milk production is beginning to decrease in the desert heat. Class I and III orders are strong. 

Condensed skim contracts are steady. Cream availability meets current dairy manufacturing needs. Butter and ice cream production are mixed, varying from flat to active, throughout the region. The top of the cream multiples range moved down a little this week.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0500 - 1.2500


     Information for the period June 21 - 25, 2021, issued weekly

     Secondary Sourced Information:

     CALIFORNIA MARKET ORDER
Milk pooled on the California Order 51 totaled 2.03 billion pounds in May 2021. Class I     utilization was 388.2 million pounds and accounted for about 19.1 percent of producer milk.     The uniform price was $16.73, up $0.82 from April 2021, and $4.78 above the same month a     year ago.

Thursday Morning Dairy Market Update - Dairy Futures Lower

OPENING CALLS:

Class III Milk Futures:	4 to 10 Lower
Class IV Milk Futures:	Steady to 5 Lower
Butter Futures:	Steady to 1 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	5 to 8 Lower
Soybean Futures:	10 to 15 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	5 to 7 Lower

MILK:

Cheese prices bounced Wednesday, but that did not change the weakness of futures. The overriding factor of the Milk Production report showing continued strong gains in production kept traders on the defensive. Underlying cash will need to prove itself that it will trend higher before futures will rebound. The market is due for a correction technically, but it will be up to underlying cash to provide support for that to happen. Lower grain prices continue to keep some bearishness in the market as it will keep milk production strong. USDA will release the May Livestock Slaughter report Thursday afternoon. It will not be a market-mover but will provide the numbers for comparisons for dairy cattle slaughter.

CHEESE:

The rebound of cheese prices Wednesday failed to provide the needed support to move milk futures higher. Spot prices will need to prove themselves by continued gains before traders will get excited over a change in trend. Strong cheese production leaves plentiful supplies available to the market. This leaves buyers complacent and purchasing on an as-needed basis.

BUTTER:

The weakness in butter may be intensifying as price has now fallen below the sideways trading range it has been in for a period of time. Although inventory at end of May was large, the increase from April was by no means bearish. It appears price will not reach $2.00 anytime soon as some have suggested it would.

 

Wednesday Closing Livestock Market Update - July Class I Price: $17.42

MILK

Milk production is termed as steady with milk supplies readily available. Reports are that the previous period of hot weather did not significantly affect overall milk production. It was not long enough, and cows were able to remain somewhat comfortable depending on facilities. Once the hot weather passed, cows generally rebounded to production levels prior to the hot weather. These keep both bottling and manufacturing facilities busy and running near or at capacity. Bottling is a bit down as demand is somewhat flat to lower depending on the area. The Federal Order Class I price was announced at $17.42, down $0.87 from June and up $0.86 from July 2020. USDA will release the May Livestock Slaughter report Thursday, providing numbers for dairy cattle slaughter for the month. Even if slaughter is higher, it did not make any difference as the milk production report showed an overall increase of cow numbers.

AVERAGE CLASS III PRICES:

3 Month:	$16.91
6 Month:	$17.49
9 Month:	$17.60
12 Month:	$17.64

CHEESE

Cheese plants in the Midwest report that discounts on spot milk are running greater than last week. Plants had hoped that the hot weather would have reduced milk receipts, but that has not been the case. This keeps manufacturing schedules quite active and keeps sufficient cheese supply for demand. Buyers see no need to be aggressive. The bounce of prices Wednesday may be just the result of orders that needed to be filled.

BUTTER

Butter output has been steady as cream supply has been sufficient. There is some indication that cream supplies might be tightening in some areas, which could become more widespread as time moves forward. Food service orders are steady as the pipeline is being maintained. However, retail orders are slower. The decline of price below the recent trading range is not a good sign as supply might be building a bit more than desired.

OUTSIDE MARKETS SUMMARY

July corn gained 4.50 cents, closing at $6.6425. July soybeans declined 9.50 cents, ending at $13.85, with July soybean meal down $9.10 per ton, closing at $354.20. July wheat gained 10.25 cents, ending at $6.6125. June live cattle declined $0.60, ending at $122.55. July crude oil gained $0.23, closing at $73.08 per barrel. The Dow declined 71 points, closing at 33,874, while the NASDAQ gained 18 points, closing at 14,272.

Wednesday Midday Dairy Market Summary - Cheese Prices Increase

Cheese prices finally increased, along with blocks, rising 1.50 cents and closing at $1.49 with two loads traded; barrel cheese price increased 2 cents, closing at $1.49 with one load traded. Traders are not buying into the price increase with Class III futures mostly lower. The market will need to prove itself before buying interest will become more aggressive. Strong and increasing milk production as shown on the May production report keeps an overall bearish attitude in the market. Butter price declined 1.75 cents, ending at $1.73 with six loads traded. This moves the price below the low of May 5 and to the lowest level it has been since March 24. This does not bode well for butter as price may be breaking out of the sideways trading range. Grade A nonfat dry milk price remained unchanged at $1.2575 with one load traded. Dry whey price increased 0.50 cent, closing at 59.50 cents with no loads traded. Class III futures are 15 cents lower to 12 cents higher. Class IV futures are 13 cents lower to 7 cents higher. Butter futures are 2.50 cents lower to 0.97 cent higher. Dry whey futures are 0.50 cent lower to 0.95 cent higher.

Milk production continues to grow

U.S. milk output shot sharply higher in May, hitting a record 19.85 billion pounds, according to the USDA’s preliminary data. That’s up 4.6% from May 2020, and the biggest month-to-month increase since March 2006, thanks to good weather, increased cow numbers, and increased milk per cow.

It was the 12th month in a row to top year ago output and up a hefty 4.1% from May 2019. May output in the top 24 producing states hit 18.9 billion pounds, up 4.9%.

Keep in mind a year ago the nation was coping with the COVID pandemic, which had caused dairy product prices to plunge due to shuttered restaurants and a drop in foodservice demand, creating havoc throughout the entire food chain. In addition, many dairy farmers faced milk production restrictions mandated by their cooperatives.

Revisions added 45 million pounds to the April 50-state estimate, now put at 19.34 billion pounds, up 3.5% from a year ago, instead of the originally reported 3.3%.

May cow numbers were up for the 11th consecutive month, totaling 9.5 million head in the 50 states, up 145,000 from May 2020. May numbers were up 5,000 from the April count, which, with USDA revisions, was up an astounding 26,000 head from March.

May output per cow averaged 2,088 pounds, up 61 pounds or 3% from 2020.

California cows added 179 million pounds or 5.0% more milk in the tank than a year ago, thanks to a 105-pound gain per cow, but 1,000 fewer cows. Wisconsin output was up 144 million pounds or 5.6%, on an 85-pound gain per cow and 17,000 more cows.

Idaho was up 2.7%, on 10,000 more cows and 25 pounds more per cow. Michigan was up 5.1%, on 17,000 more cows and a 25-pound gain per cow.

Minnesota was up 6% on 19,000 more cows and a 30-pound gain per cow. New Mexico was also up 6%, on a 110-pound gain per cow and 2,000 more cows.

New York put in a 4.2% increase on an 80-pound gain per cow and 2,000 more cows.

Oregon was up 0.9% on 1,000 more cows but output per cow was unchanged. Pennsylvania was up 1.8%, despite a drop of 8,000 cows, helped by a 65-pound gain in milk per cow.

South Dakota posted the biggest gain again, up 14.6%, on 19,000 more cows and a 5-pound gain per cow. Indiana was up 12.6%, thanks to 20,000 more cows and a 20-pound per cow gain, and Texas scored the third biggest increase, up 10.8%, on an eye-popping 32,000 more cows and a 105-pound gain per cow. Texas may be challenging Idaho and New York as the nation’s No. 3 milk producer.

Washington state was one of only three states showing a decline in milk output, down 0.9%, on 2,000 fewer cows, and a 5-pound drop per cow.

Stocks growing

The nation’s dairy stocks are growing. The Agriculture Department’s latest Cold Storage report showed May 31 butter stocks totaled a whopping 401.8 million pounds, up 15.6 million pounds or 4.0% above April and a weighty 26 million pounds or 6.9% above those on May 31, 2020.

American type cheese climbed to 830.7 million pounds, up 4 million or 0.5% from the April level, which was revised down 4.1 million pounds from last month’s report, and were 10.7 million pounds or 1.3% above a year ago.

The “other” cheese category saw stocks jump to 612.8 million pounds, up 11.9 million pounds or 2% from April, and 2.9 million or 0.5% above a year ago.

The total cheese inventory stood at 1.465 billion pounds, up 16.6 million pounds or 1.1% from April and 10.8 million pounds or 0.7% above a year ago.

Prices falling

Mid-June dairy prices weakened and last week was a bit lean on fodder for the markets. The May Milk Production was to be released Friday afternoon after the markets had finished trading, but was delayed until Monday, in observance of the Juneteenth federal holiday.

The CME Cheddar blocks closed Friday at $1.4925 per pound, down 0.75 cents on the week and $1.1575 below a year ago. The barrels finished at $1.5425, down 13 cents, lowest since April 6, 74.25 cents below a year ago, and 5 cents above the block. There were 14 sales of block on the week and 42 of barrel.

The blocks gave up 2 cents Monday on a trade but regained a quarter-cent Tuesday on an unfilled bid, hitting $1.4750, as traders weighed the May milk production data and awaited the afternoon’s Cold Storage report.

The barrels lost 6.25 cents Monday and were down a penny Tuesday to $1.47, lowest since March 26, and back below the blocks for the first time since May 18.

Milk remains plentiful in the Midwest despite temperatures hitting the 90-degree mark, according to Dairy Market News. Some cheesemakers said plentiful was an understatement, and are operating at maximum capacity. The barrel price sitting atop the block price was not viewed favorably.

Retail and foodservice cheese demand in the West held steady last week and export demand increased, particularly from Asian markets, as prices fell. Cheesemakers are running full schedules to take advantage of the available milk, says DMN.

Butter closed the week at $1.7850 per pound, down 0.75 cents and 6.50 cents below a year ago, on 17 sales.

Monday’s butter was unchanged but it lost 3.75 cents Tuesday, melting to $1.7475.

Midwest butter producers are staying busy, as cream is plentiful. Retail butter demand has slowed but is meeting seasonal expectations. Some butter plant managers continue to say that foodservice sales are better than expected.

Plenty of cream is available in the West though contacts report that widespread transportation issues were creating delivery delays. Lots of cream is flowing into Class II and III production to support growing cream cheese demand and steady to strong ice cream orders. Retail demand remains soft but foodservice orders are healthy. Dine-in restrictions were lifted in California last week, and contacts expect that will provide an additional boost to demand in the next few weeks.

Grade A nonfat dry milk fell to $1.25 per pound last Thursday, lowest since April 21, but closed Friday at $1.2650, down 3.50 cents on the week and 23.25 cents above a year ago. There were 19 sales reported last week.

Traders took the powder down a penny Monday but inched it back up a quarter-cent Tuesday to $1.2575.

CME dry whey fell to 59.25 cents per pound last Wednesday, lowest since March 12, but closed Friday at 61 cents per pound, down 1.75 cents on the week but 28.25 cents above a year ago. Only 2 cars were sold on the week.

Monday’s whey was unchanged but it lost 2 cents Tuesday, dipping to 59 cents per pound, lowest since March 5.

From: Capital Press

Monday Closing Dairy Market Update - May Milk Production Jumps 4.6%

MILK:

August Class III futures slipped below $17.00 Monday as pressure mounted due to the decline of cheese prices. It is becoming more evident that milk production is not going to decline anytime soon. The May Milk Production report showed milk production in the top 24 states up 4.6% compared to May 2020 totaling 18.9 billion pounds. Milk production for April was revised higher increasing production by 0.2%. Production per cow averaged 2,107 pounds or 63 pounds per cow above May 2020. Cow numbers totaled 8.99 million head, 152,000 head more than a year ago and 5,000 head more than April. Milk production in the U.S. was 4.6% higher than a year ago. Milk production per cow averaged 2,088 pounds, up 61 pounds over a year ago. Cow numbers totaled 9.505 million head. This was 145,000 head more than a year ago and an increase of 5,000 head more than the previous month. A completely accurate comparison cannot be done due to the factors of last year and far as milk production per cow as farms were ordered to cut back on production quickly or be paid much less for the extra milk. Cows were dried off early and in some cases production per cow was impacted as some farms opted to reduce output per cow which in turn reduced milk production. However, cow numbers can be compared as they are what they are. These cows are all producing milk and producing it at an incredible level. Cow numbers dipped last year by 17,000 head from April to May but have since come back with a vengeance. There were only three states of the top 24 states which showed declines. Virginia declined 2.3%, Washington declined 0.9% and Arizona was down 0.5%. The rest of the top 24 states showed significant increases in production.

AVERAGE CLASS III PRICES:

3 Month:	$16.92
6 Month:	$17.60
9 Month:	$17.74
12 Month:	$17.77

CHEESE:

Cheese prices do not seem to have found a bottom. Sellers continue to offer it to the spot market. There was a report that a cheese facility is running at capacity and has a lot of cheese they need to move to the market as quickly as they can. There is continued concern over some of the low bids that show up during spot barrel trading. This could indicate where price will find support. Buyers are just letting it come to them.

BUTTER:

Butter turned a blind eye to what took place in the spot market for cheese and nonfat dry milk. Demand is strong enough both from domestic and international buyers, keeping price within a range. This is expected to continue as supply and demand remains balanced.

OUTSIDE MARKETS SUMMARY:

July corn gained 4 cents, closing at $6.5925. July soybeans gained 19 cents, ending at $14.15 with July soybean meal down $0.30 per ton, closing at $372.10. July wheat declined 1.25 cents, closing at $6.6150. June live cattle slipped $0.07, ending at $120.97. July crude oil jumped $2.02, closing at $73.66 per barrel. The DOW jumped $587 points, closing at 33,877 while the NASDAQ gained 111 points, closing at 14,141.

May Milk Production in the United States up 4.6 Percent

May Milk Production up 4.9 Percent 

Milk production in the 24 major States during May totaled 18.9 billion pounds, up 4.9 percent from May 2020. April revised production, at 18.5 billion pounds, was up 3.7 percent from April 2020. The April revision represented an increase of 44 million pounds or 0.2 percent from last month's preliminary production estimate. Production per cow in the 24 major States averaged 2,107 pounds for May, 63 pounds above May 2020. The number of milk cows on farms in the 24 major States was 8.99 million head, 152,000 head more than May 2020, and 5,000 head more than April 2021. 

May Milk Production in the United States up 4.6 Percent 

Milk production in the United States during May totaled 19.9 billion pounds, up 4.6 percent from May 2020. Production per cow in the United States averaged 2,088 pounds for May, 61 pounds above May 2020. The number of milk cows on farms in the United States was 9.51 million head, 145,000 head more than May 2020, and 5,000 head more than April 2021.

Monday Midday Dairy Market Update - Barrel Cheese Falls

Block cheese price declined 2 cents, closing at $1.4725 with one load traded. Barrel cheese price fell 6.25 cents, closing at $1.48 with three loads traded. This moves barrels nearly to the same level as blocks and the closest spread they had been in quite some time. This put greater pressure on Class III futures in the July and August contracts which are showing 24-cent and 13-cent losses, respectively. Futures are 3 cents higher to 24 cents lower with the higher contracts in June, July and August 2022. Butter price remained unchanged at $1.7850 with no loads traded. Grade A nonfat dry milk price declined a penny, closing at $1.2550 with five loads traded. Dry whey price remained unchanged at 61 cents with no loads traded. Class IV futures have not yet traded. Butter futures are 1.00 to 4.57 cents lower. Dry whey futures are 0.10 to 1.00 cents lower. USDA will release the May Milk Production report this afternoon. I estimate milk production to be up 2.4% from the previous year with cow numbers up 4,000 head from April.

Dairy Checkoff Launches Monthly Podcast

National and local dairy checkoff organizations are working together to get into podcasting. They’ve launched a monthly program called “Your Dairy Checkoff,” which will showcase how checkoff programs across the country are working together to build dairy sales and trust in today’s changing marketplace. Each episode will be hosted by dairy farmers or industry experts. Listeners will hear conversations focusing on local, national, and global dairy promotion, including consumer research, dairy nutrition, as well as science and issues updates. Farmers will have a hand in the selection of topics by providing feedback. “The dairy checkoff is excited to take advantage of increasingly popular podcast programming to share examples of how the dairy promotion organizations are working together to deliver results for us,” says Missouri dairy farmer Alex Peterson, who serves as Chair of the National Dairy Promotion and Research Board. The first episode is called “Reaching Gen Z: Through the World of Gaming,” and it features a conversation about how the checkoff is looking to online video gaming to reach this consumer segment, which is 10 to 23 years old.

Monday Morning Dairy Market Update - Slow Start to the Week

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	10 to 15 Lower
Soybean Futures:	12 to 22 Lower
Soybean Meal Futures:	$4 to $6 Lower
Wheat Futures:	4 to 7 Lower

MILK:

Grain prices are lower again on rains that fell over the weekend in areas of the Corn Belt. This takes the edge off some of the concern over high feed prices. However, there is a lot of growing season remaining, which can swing prices violently. The volatility that has been seen in grain prices has had little impact on milk futures over the past few weeks. The weakness of underlying cash has put pressure on the market. There is little for traders to get excited about. USDA will release the May Milk Production report Monday afternoon, which will not be a market-mover, but it will provide a sense of market strength. I estimate milk production to be up 2.4% over a year ago with cow numbers up 4,000 head from April.

CHEESE:

Spot cheese prices continue to remain under pressure as increased cheese production has kept sufficient supply available to the market. Sellers keep offering cheese on the spot market in order to manage supplies. Plants do not want to hold much inventory and speculate on higher prices at some point. Buyers continue to purchase as it is being offered generally at lower prices. This allows buyers to easily meet current demand as well as build some inventory for upcoming demand. That may limit any strong price rally later in the year.

BUTTER:

Price continues to hold within a range as supply is readily available. Demand is easily being met with indication that inventory has been increasing. There will be confirmation of this on the May Cold Storage report on Tuesday. Cream supply has remained sufficient keeping churns more active than usual at this time of year. Price is expected to remain sideways.

Friday Closing Dairy Market Update - Fluid Milk Sales Decline 3.8%

MILK

Underlying cash prices declined in all categories this week, putting pressure on both Class III and Class IV futures. The September Class III contract fell below $18 for the first time since Feb. 25. Optimism at one point took price above $20 on May 12 before price came crashing down, first following corn and then decoupling itself and weakening based on sufficient milk supply for demand. April fluid milk sales declined 3.8% from April 2020. Whole milk sales fell 10.5%, flavored whole milk sales jumped 21.0%, reduced-fat milk declined 6.5%, low-fat milk declined 5.0%, fat-free skim sales fell 11.4%, flavored fat-reduced milk jumped 50.8%, buttermilk jumped 25.8%, with other milk products up 25.8%.

This puts conventional milk product sales 3.7% lower than a year ago. Organic milk sales declined 4.8%. Organic whole milk declined 4.8%, organic reduce milk declined 0.9%, organic low-fat milk declined 9.6%, organic fat-free declined 21.3%, organic flavored fat-reduced milk sales increased 9.5% with other fluid milk products down 44.6%.

AVERAGE CLASS III PRICES

3 Month:	$17.09
6 Month:	$17.71
9 Month:	$17.84
12 Month:	$17.85

CHEESE

Cheese production has been strong throughout the country with milk production remaining brisk despite the hotter weather that has been experienced. It is interesting to note that some plants reported that milk receipts have actually increased. However, spring flush peak has been reached and is past. Spot milk in the Midwest is reportedly $4 to $6 under class. For the week, blocks declined 0.75 cent with 14 loads traded. Barrel cheese fell 13 cents with 42 loads traded. Dry whey declined 1.75 cents with two loads traded.

BUTTER

Cream supply remains plentiful with no shortage for butter manufacturers. Butter supply is readily available for demand with inventory building for later demand. The tone of the market is steady, keeping price within a sideways range. For the week, butter declined 0.75 cent with 17 loads traded. Grade A nonfat dry milk declined 3.50 cents with 19 loads traded.

OUTSIDE MARKETS SUMMARY

July corn jumped 22.25 cents, ending at $6.5525. July soybeans jumped 66.25 cents, closing at $13.9625, with July soybean meal up $11.90 per ton, closing at $373.40. July wheat jumped 23.75, closing at $6.6275. June live cattle gained $0.95, closing at $121.05. July crude oil gained $0.60, ending at $71.64 per barrel. The Dow fell 533 points, closing at 33,290, while the NASDAQ fell 131 points, closing at 14,030.

Friday Midday Dairy Market Summary - Barrels Continue to Decline

Block cheese price was able to increase 0.25 cent closing at $1.4925 with no loads traded. An offer remained above the market with no interest in lowering that offer. Barrel cheese price declined 2.75 cents closing at $1.5425 with 14 loads traded. Fortunately, price recovered from the low of $1.53 during the trading period as buyers and sellers accomplished business. The unfortunate aspect of the barrel market is that there were some unfilled bids remained at $1.47 to $1.49. This could be the level where price could eventually go before it is all said and done. If you recall, I pointed this out about a week ago that a low bid had been placed and was the only bid in the market that day. That generally indicates the level where price will eventually go and that is what is happening. Butter price declined 2 cents closing at $1.7850 with one load traded. Grade A nonfat dry milk price increased 1.50 cents closing at $1.2650 with 5 loads traded. Dry whey price increased 1.75 cents closing at 61 cents with one load traded. Class III futures are mixed ranging from 21 cents lower to 10 cents higher. Class IV futures are 5 cents lower to 35 cents higher. Butter futures are 0.25 cent to 1.00 cents lower. Dry whey futures are 0.25 cent lower to 0.82 cent higher.