MILK
Class III milk futures eliminated much of the gains of Tuesday. This keeps traders cautious and trading short term to scalp the market for a profit. There is no evidence of long-term price direction. There is more evidence of milk production slowing in many areas of the country. However, even with this slowing, milk supplies remain plentiful. USDA released the June Federal Order milk prices Wednesday. The Class II price is $16.66, up $0.44 from May. The Class III price is $17.21, down $1.75 from the previous month. The Class IV price is $16.35, up $0.19 from May. The income over feed for May is $6.89 and $0.05 lower than April. The average corn price was $5.91, up $0.60 from April. The average alfalfa hay price was $187 per ton, up $7 from May. The average premium/supreme alfalfa hay price was $226 per ton, up $15 per ton from the previous month. This put the alfalfa blend price at $210. The central Illinois soybean meal price was $421.03 per ton, an increase of $7.67 per ton from the previous month. The all-milk price was $19.20, an increase of $0.80 per cwt from April. Those who chose the $9.50 coverage level for the Dairy Margin Coverage program will receive a check for $2.61 per cwt.
AVERAGE CLASS III PRICES
| 3 Month: | $17.13 |
| 6 Month: | $17.58 |
| 9 Month: | $17.60 |
| 12 Month: | $17.62 |
CHEESE
Cheese production remains active with some concern being voiced over the growth of inventory, primarily in the Midwest. Milk production has slowed, but supply remains plentiful. Discounted milk continues to remain available with the discount as much as $6 under Class in some instances. Demand is steady with orders coming in.
BUTTER
There are reports that churns will be running through the holiday period in order to keep up with demand as well as utilize available cream. Butter has been moving a bit better through retail channels due to stores featuring butter through special promotions to increase store traffic.
OUTSIDE MARKETS SUMMARY
July corn jumped 25.50 cents, closing at $7.20. July soybeans gained 90.25 cents, closing at $14.50, with July soybean meal up $27.10 per ton, closing at $375.50. July wheat jumped 31.75 cents, closing at $6.7150. August live cattle gained $0.80, ending at $122.75. August crude oil gained $0.49, ending at $73.47 per barrel. The Dow gained 210 points, closing at 34,503, while the NASDAQ declined 24 points, closing at 14,504.
