MILK
Milk futures increased in all categories due to another day of strength in underlying cash. The double-digit gains did not keep pace with the jump in cheese and butter prices as would have been expected. Traders feel positive about spot prices moving higher but are staying cautious as there may be a threshold at which aggressive buying will cease which might bring sellers back into the market again as they want to take advantage of higher prices. The June Federal Order class prices were announced showing mixed prices compared to the previous month. Class II price was $26.65, up $0.78 from May and a new record high. Class III price was $24.33, down $0.88 from May. Class IV price was $25.83, up $0.84 from May.
AVERAGE CLASS III PRICES
| 3 Month: | $23.24 |
| 6 Month: | $23.31 |
| 9 Month: | $22.80 |
| 12 Month: | $22.29 |
CHEESE
Block cheese price has increased 10.50 cents over the past two days with barrels up 5.25 cents. This has been an impressive bounce after nearly a month of declines. Cheese manufacturers indicate there is sufficient milk available for needs. Demand for cheese has been reported to be steady for the month.
BUTTER
Butter moved back up near $3.00 again and may challenge that level as buyers have turned more aggressive. There is concern over supply later in the year with buyers seeing little potential for price weakness anytime soon. Demand may be slowing in some instances but that has not backed up supply into the market. Price is expected to remain range bound.
OUTSIDE MARKETS SUMMARY
July corn gained 10.75 cents closing at $7.7025. July soybeans gained 10.50 cents closing at $16.7425 with July soybean meal up $8.10 closing at $463.20 per ton. July wheat declined 5.75 cents ending at $9.1550. June live cattle gained $0.50 closing at $136.80. August crude oil declined $1.98 closing at $109.78. The DOW gained 82 points closing at 31,029 while the NASDAQ slipped 4 points ending at 11,178.
