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.
