MILK
It was interesting to see Class III milk futures unable to post strong gains even though cheese prices increased. Contracts came back from the lows established prior to spot trading, but just could not garner sufficient buying interest to push the market very much. Traders now seem to be reluctant to get on the bandwagon, concerned over whether the rebound will hold, or the market will trend higher. Milk production is expected to be affected by the current hot weather. This is putting management and cooling systems to the test. The South Dairy trade numbers were released Tuesday and showed increases in most categories. These prices are for dairy products moving through the ports of Uruguay and Argentina. Uruguay had 8,184.21 tons of dairy products moving through their ports during the period of May 16-31. Product was moved to 20 destinations at an average price $4,343.98 per ton. Whole milk powder price increased 0.2% from the previous report totaling $4,207.10 per ton or $1.91 per pound. Skim milk powder increased 7.7% to $3,977.20 per ton or $1.81 per pound. Semi-hard cheese decreased 1.4% to $4,004.31 per ton or $1.82 per pound. Hard cheese declined 5.0% to $5,772.89 per ton or $2.62 per pound. Butter increased 0.3% to $5,691.94 per ton or $2.58 per pound. Argentina recorded 8,389.66 tons moving through ports to 25 destinations at an average price of $4,402.14 per ton for the period from April 16-30. Whole milk powder increased 3.4% to $4,414.23 per ton or $2 per pound. Skim milk powder increased 0.9% to $3,781.63 per ton or $1.72 per pound. Semi-hard cheese increased 4.0% to $4,370.11 per ton or $1.98 per pound. Hard cheese gained 3.6% to $6,184.80 per ton or $2.81 per pound. Butter gained 7.1% to $5,371.48 per ton or $2.44 per pound. Buttermilk increased 2.5% to $3,000 per ton or $1.36 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $24.33 |
| 6 Month: | $24.17 |
| 9 Month: | $23.61 |
| 12 Month: | $23.05 |
CHEESE
It was certainly good to see some strength of cheese prices. Buyers needed to purchase supply and Wednesday was the day as price moved to an attractive level. It is not clear whether prices may have found support or if it was just a day of doing business. Cheese orders are holding well and meeting industry expectations. There is more milk available moving a greater amount to manufacturing with spot milk reported to be as much as $5 under class.
BUTTER
Cream supply is reported to be tighter in some areas. Cream supply is available, but there has been some difficulty moving around due to the lack of truck drivers. Demand has slowed somewhat seasonally as well as at the retail level.
OUTSIDE MARKETS SUMMARY
July corn gained 5.75 cents, closing at $7.74. July soybeans declined 4.75 cents, closing at $16.9375, with July soybean meal up $6.50 per ton, closing at $417.50. July wheat slipped 0.25 cent, closing at $10.50. June live cattle gained $2.35, closing at $137.55. July crude oil fell $3.62, closing at $115.31 per barrel. The Dow gained 304 points, closing at 30,669, while the NASDAQ gained 271 points, closing at 11,099.
