MILK
Class III milk futures fell nearly every day this week with the decline faster than they went up. The weakness of cheese prices pulled much of the optimism out of the market for the time being. Even the gains in cheese prices realized on Wednesday and Friday could not convince traders that the market bounce would hold. Futures have been and still hold a premium to underlying cash, leaving little reason for them to bounce in the midst of price weakness. Class IV futures fell harder than Class III futures due to Class IV futures holding close to the underlying cash and falling right along with it. April fluid milk sales declined 2.1% compared to April 2021. Conventional whole milk sales increased 3.0%, flavored whole milk increased 3.1%, reduced-fat milk decreased 8.9%, low-fat milk decreased 9.8%, fat-free skim milk declined 8.4%, flavored fat-reduced milk sales increased 11.1%, buttermilk declined 0.6% with other fluid milk product sales up 29.4%. Organic milk showed a decline of whole milk sales of 3.3%, organic flavored whole milk decreased 9.4%, organic reduced-fat decreased 0.1%, organic low-fat decreased 9.9%, organic fat-free skim decreased 9.5%, organic flavored fat-reduced milk sales decreased 6.7% with sales of other organic fluid milk products up 200.4%.
AVERAGE CLASS III PRICES
| 3 Month: | $24.00 |
| 6 Month: | $23.84 |
| 9 Month: | $23.31 |
| 12 Month: | $22.76 |
CHEESE
For the week, cheese prices declined with blocks down 11 cents with 11 loads traded. Barrels declined 8.50 cents with 26 loads traded. This is the fourth consecutive week block price has declined. Dry whey declined 5 cents with 16 loads traded. This was a large number of loads of dry whey traded over the period of a week. Traders are not convinced the bounce Friday will mark a change in trend. Traders will have an extended weekend to ponder the strength of the market. Dairy markets will be closed on Monday for the Juneteenth holiday.
BUTTER
For the week, butter declined 3.50 cents with 36 loads traded. Grade A nonfat dry milk declined 5.50 cents with 16 loads traded. The decline of Grade A nonfat dry milk is concerning and is taking Class IV futures with it.
OUTSIDE MARKETS SUMMARY
July corn declined 3.75 cents, closing at $7.8450. July soybeans declined 7.50 cents, ending at $17.02, with July soybean meal up $8.40, closing at $438.10 per ton. July wheat fell 44 cents, ending at $10.3425. June live cattle gained $0.27, closing at $138.02. July crude oil fell $8.03, ending at $109.56 per barrel. The Dow slipped 38 points, closing at 29,889, while the NASDAQ gained 152 points, closing at 10,798.
