MILK
Milk production is strong, but it has been somewhat surprising that spot milk offers have not been overwhelming. Those who are looking for extra milk are not having any difficulty finding it. Other plants are not getting as many calls from milk handlers who are trying to find a home for milk. Weather fluctuations are about as wild as volatility in the markets. It was not too long ago there had been freezing temperatures while most are looking ahead to hot weather over the next week. This will affect milk output, but the effect might be minimal due to advances made in housing and cooling. Those areas that have had beneficial rains will see crops flourish, while those who have had limited rains will see further drying and impact on crops. Bottling has slowed due to schools closing with more milk moving to Class II and Class III production. USDA announced the Federal order class prices for the month of May. Class II is $16.22, up $0.66 from April and $3.92 higher than a year ago. Class III price is $18.96, up $1.29 from April and $6.82 higher than a year ago. The Class IV price is $16.16, up $0.74 from April and $5.49 higher than a year ago. So far this year, the average Class II price is $15.02. The average for Class III is $16.91. The average for Class IV is $14.53.
Average Class III Prices
| 3 Month: | $17.85 |
| 6 Month: | $18.34 |
| 9 Month: | $18.20 |
| 12 Month: | $18.15 |
CHEESE
It was interesting to see no loads of cheese traded Thursday during the spot trading period. Activity has been rather brisk recently, but either immediate demand has been satisfied or buyers and sellers were just not actively in the market. The latter is likely the reason. Cheese production is strong with some areas reporting that production is exceeding demand. That may be why buyers have not been aggressive on the spot market.
BUTTER
Some reports indicate demand for butter has nearly moved back to where it was prior to COVID. Churns have not been selling cream as usual during this time of year as demand has remained strong. There is sufficient cream supply available for all areas of cream demand. More cream was available over the holiday weekend, but not as heavy as expected.
OUTSIDE MARKETS SUMMARY
July corn fell 13 cents, closing at $6.62. July soybeans declined 13.25 cents, closing at $15.49, with July soybean meal down $2.40 per ton, ending at $391.60. July wheat declined 11.25 cents, closing at $6.7625. June live cattle slipped $0.35, closing at $116.77. July crude oil slipped $0.02, ending at $68.81 per barrel. The Dow declined 23 points, closing at 34,577, while the NASDAQ fell 142 points, closing at 13,615.
