MILK
Class III milk futures showed strength as the morning progressed with traders anticipating further gains of cheese prices. Only blocks increased during spot trading but that was enough to propel futures prices even higher pushing both July and August above $25.00. Only July closed above that level with a gain of $0.47 today and price closing at $25.07. August fell back below $25.00 settling at $24.98. Class IV contracts were not as strong but continue to push to new contract highs. It is certainly positive that milk prices seem to be keeping up with expenses to some extent. Whether this will continue is anyone's guess. However, it is providing opportunities. Corn weekly crop progress reached 94% planted compared to 98% a year ago and a five-year average of 92%. The first weekly crop conditions report showed corn at 73% good/excellent compared to 72% a year ago. Soybeans are 78% planted compared to 89% last year and a five-year average of 79%. Soybean crop condition is 59% good/excellent compared to 58% last week. There remain areas that still have not yet been able to plant and it is difficult to assess just how many acres that will be at present.
AVERAGE CLASS III PRICES
| 3 Month: | $24.84 |
| 6 Month: | $24.03 |
| 9 Month: | $24.00 |
| 12 Month: | $23.34 |
CHEESE
The movement of cheese prices today certainly did not indicate the current strength of the market. However, the market seems to be supported after the decline over the past two weeks. The market may now trend higher if demand holds and buyers step back up to the plate. The Global Dairy Trade auction will take place tomorrow with cheese and butter being the categories to watch.
BUTTER
Overall butter demand seems to be holding well causing buyers to remain aggressive even though high price is reportedly having an impact at the retail level. There is a fear that supply could tighten as the year progresses and buyers would rather purchase now rather than hold for a chance that price could soften at some point before holiday demand increases.
OUTSIDE MARKETS SUMMARY
July corn jumped 15.50 cents closing at $7.4250. July soybeans increased 1.50 cents closing at $16.9925 with July soybean meal down $0.80 per ton closing at $407.10. July wheat jumped 53 cents closing at $10.93. June live cattle declined $0.77 closing at $132.82. July crude oil declined $0.37 ending at $118.50 per barrel. The DOW gained 16 points closing at 32,916 while the NASDAQ gained 49 points closing at 12,061.
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