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.
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