MILK
Class III milk futures have been steadily increasing over the past two weeks. Cheese prices have provided some support, but support is also coming from a little change of attitude. Traders seem to be a bit more friendly to the market and do not sell heavily into the market if there is any price weakness in underlying cash. There are now eight Class III futures contracts that are trading at or above $18 with five of those being June through October 2022. The Global Dairy Trade Auction took place Tuesday with the trade-weighted average remaining unchanged. Anhydrous milk fat increased 0.4% to $5,984 per metric ton or $2.71 per pound. Butter increased 0.4% to $4,878 per metric ton or $2.21 per pound. Buttermilk powder gained 9.7% to $3,688 per metric ton or $1.67 per pound. Cheddar cheese price increased 0.7% to $4,297 per pound or $1.95 per metric ton Lactose increased 0.4% to $1,188 per metric ton or $0.54 per pound. Skim milk powder gained 0.5% to $3,315 per metric ton or $1.50 per pound. Whole milk powder declined 0.4% to $3,749 per metric ton or $1.70 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $18.29 |
| 6 Month: | $18.07 |
| 9 Month: | $18.01 |
| 12 Month: | $18.03 |
CHEESE
Barrel cheese price is nearing the highs it reached on May 5 at $1.8450. If price moves above that level, it will move back to the highest level since mid-November. That might be a tall order under the current market situation, but it certainly is doable. Price has been in a strong uptrend over the past month. Blocks will need to regain lost ground to turn the trend higher. Demand is good but will need to improve if we are to see strong prices through the end of the year.
BUTTER
Price seems to be stuck having a difficult time regaining lost ground. Butter production is sufficient to satisfy demand along with being supplemented by inventory. This leaves buyers confident of supply and less aggressive with their purchases.
OUTSIDE MARKETS SUMMARY
December corn declined 3.25 cents, closing at $5.3750. November soybeans jumped 14.75 cents, ending at $12.5050, with October soybean meal down $1.90 per ton, closing at $320.20. December wheat fell 11.75 cents, ending at $7.4475. October live cattle gained $0.20, closing at $122.82. November crude oil gained $1.31 at $78.93 per barrel. The Dow closed 312 points higher at 34,315, while the NASDAQ gained 178 points, closing at 14,434.
