MILK
Milk futures did not react very much to the increase in cash prices. The market will need to prove that it will trend higher before traders will buy futures more aggressively. The South Dairy Trade Report was released today showing mostly gains in price for dairy products moving through the ports in Argentina and Uruguay during the first half of May. Argentina reported 7692.47 tons moving through the ports to 27 destinations at an average price of $4,606.52 per ton. Whole milk powder price increased 1.5% from the previous report to $4,4891.71 per ton or $2.04 per pound. Skim milk powder increased 3.5% to $3,915.13 per ton or $1.78 per pound. Semi-hard cheese gained 2.2% to $4,464.14 per ton or $2.03 per pound. Hard cheese increased 2.1% to $6,317.75 per ton or $2.87 per pound. Butter declined 1.3% to $5,301.78 per ton or $2.41 per pound. Buttermilk powder gained 3.3% to $3,100 per ton or $1.41 per pound. Uruguay reported the first half of June having 6,179.2 tons exported to 25 destinations at an average price of $4,651.77 per ton. Whole milk powder price increased 8.7% to $4,574.52 per ton or $2.08 per pound. Skim milk powder increased 2.8% to $4,089.40 per ton or $1.86 per pound Semi-hard cheese jumped 12.3% to $4,498.68 per ton or $2.04 per pound. Hard cheese fell 19.0% to $4,674.18 per ton or $2.12 per pound. Butter increased 0.3% to $5,710.24 per ton or $2.59 per pound, Buttermilk price was unchanged at $4,120.35 per ton or $1.87 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $23.10 |
| 6 Month: | $23.18 |
| 9 Month: | $22.65 |
| 12 Month: | $22.13 |
CHEESE
Buyers became more aggressive in cheese today taking advantage of the lower prices. Not much was traded due to sellers holding back waiting to see just how aggressive buyers will be. There is sufficient cheese available to meet demand with more already on hand than usual.
BUTTER
Price like to remain in the $2.90 -$3.00 range. Lower inventory and lower production leave sufficient supply for demand and then some as inventory has been increasing month-over-month. However, it is not gaining on a year-over-year basis. This should continue to support the price.
OUTSIDE MARKETS SUMMARY
July corn gained 15.25 cents closing at $7.5950. July soybeans jumped 33.25 cents closing at $16.6375 with July soybean meal up $12.40 closing at $455.10 per ton. July wheat gained 17.25 cents ending at $9.2125. June live cattle gained $0.05 closing at $136.30. August crude oil gained $2.19 per barrel ending at $111.76. The DOW fell 491 points closing at 30,947 while the NASDAQ fell 343 points closing at 11,182.
