MILK:
Class III milk futures accomplished very little Wednesday with contracts closing on either side of unchanged or unchanged. Trading activity was light with most of the activity confined to June, July and September contracts. Class IV futures were under a bit more pressure with some contracts posting double-digit losses, which was a surprise as butter increased and nonfat dry milk remained unchanged. The Global Dairy Trade auction took place Tuesday and showed the trade weighted average declining 0.9%. This is the fourth consecutive event, which showed a minor decline. Anhydrous milk fat declined 0.8% at $5,654 per metric ton or $2.56 per pound. Butter price declined 5.4% to $4,690 per metric ton or $2.13 per pound. Buttermilk powder declined 7.5% to $3,810 per metric ton or $1.73 per pound. Cheddar cheese price gained 0.5% to $4,324 per metric ton or $1.96 per pound. Lactose declined 1.6% to $1,236 per metric ton or $0.56 per pound. Skim milk powder declined 0.5% to $3,415 per metric ton or $1.55 per pound. Whole milk powder declined 0.5% to $4,062 per metric ton or $1.84 per pound. USDA will release the May Federal Order class prices Thursday, which was delayed due to the holiday on Monday.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.85 |
| 6 Month: | $18.34 |
| 9 Month: | $18.28 |
| 12 Month: | $18.16 |
CHEESE:
Cheese manufacturers are busy as milk receipts are increasing at the plant level. In the Midwest, it is reported milk production has not yet reached its peak. Recent cool weather has kept cows comfortable and milk production strong. This has kept milk production strong. Temperatures are forecast to get much higher over the next week and will have an impact on milk production. It may not be long enough to have a lasting effect as temperatures will again cool after that.
BUTTER:
More cream was available over the weekend, allowing sufficient supply to be available for churning. However, now that the holiday is over, cream will be less available, but still sufficient for manufacturing needs. Demand is steady with manufacturers also attempting to build some inventory for later demand.
OUTSIDE MARKETS SUMMARY:
July corn declined 13.75 cents, closing at $6.75. July soybeans gained 14 cents, closing at $15.6250, with July soybean meal down $4.70 per ton, closing at $394.00. July wheat declined 6 cents, closing at $6.8750. June live cattle jumped $3.57, closing at $117.12. July crude oil jumped $1.11, ending at $68.83 per barrel. The Dow gained 25 points, ending at 34,600, while the NASDAQ gained 20 points, closing at 13,756.
