MILK
Milk production has been holding well in general, but there is some impact noted due to hot weather. Milk output, as well as components, are suffering a bit. This is seasonal but a little earlier than usual. Having said that, manufacturers report quite a significant amount of milk is moving at a discount to class. Fluid demand has slowed to some extent likely due to summer weather but also could be due to higher milk prices in the store causing consumers to pull back a bit. Class III milk futures declined slightly into the settlement of the day which is shortly after 2 pm. Central time Markets still trade for another 2 hours but will settle where they were after 2 pm. Once the cold storage report was released today, substantial pressure was put on the market as traders sold quickly due to the bearish implications of the report. Class III futures dropped quickly with losses of 30-40 cents or more depending on the contract. This sets the stage for a lower overnight trade. The July Class I price was announced at $25.87 and was unchanged from June.
AVERAGE CLASS III PRICES
| 3 Month: | $23.93 |
| 6 Month: | $23.87 |
| 9 Month: | $23.34 |
| 12 Month: | $22.78 |
CHEESE
The May Cold Storage report was a little more bearish than anticipated. Inventory was expected to increase but not as much as it did. American cheese inventory increased 22.1 million pounds to a total of 857.9 million pounds, up 4% over a year ago. Swiss cheese inventory increased 1.9 million pounds totaling 25.8 million pounds, up 16% from a year ago. Other cheese stocks grew 7.2 million pounds reaching a total of 628.3 million pounds and 3% above a year ago. This put total cheese inventory at 1.512 billion pounds, an increase of 31.1 million pounds and 4% above a year ago. American cheese inventory for the month of May is the highest since 1984 and the highest inventory for any month since 1985. Swiss cheese stocks are the highest since October 2019. The real bearish aspect is total cheese inventory is the highest since we have records back through 1980 and is possibly a record amount of cheese in inventory.
BUTTER
Butter stocks increased 23.3 million pounds totaling 321.6 million pounds. Inventory is 22% lower than a year ago Leaving the market in a positive position for continued support of price.
OUTSIDE MARKETS SUMMARY
July corn fell 21.25 cents ending at $7.4675. July soybeans fell 59.50 cents closing at $15.9325 with July soybean meal down $5.70 per ton closing at $426.70. July wheat fell 39.25 cents closing at $937.25. June live cattle declined $0.87 ending at $135.25. August crude oil declined $1.92 ending at $104.27 per barrel. The DOW gained 194 points closing at 30,677 while the NASDAQ gained 179 points closing at 11,232.
