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.
