MILK
Milk futures fell substantially with October and November Class III futures closing limit down. Futures should not have been under this much pressure or no pressure at all based on what took place during spot trading today. Some pressure on Class III could have come from the decline of dry whey. More pressure could have come of Class IV futures due to the weakness of butter and nonfat dry milk, but certainly not the pressure that was seen today. This market seems overdone to the downside. The South Dairy Trade report was released yesterday showing prices of dairy products moving through the ports of Argentina and Uruguay over a two-week period of time. In Argentina during the period from May 16–May 31, there were 8,009.37 tons moved to 19 destinations at an average price of $4,585.078 per ton or $2.08 per pound. Whole milk powder decreased 0.5 percent from the previous time period at $4,459.29 per ton or $2.03 per pound. Skim milk powder increased 5.5 percent to $4,130.64 per ton or $1.83 per pound. Semi-hard cheese increased 3.4 percent to $4,615.10 per ton or $2.10 per pound. Hard cheese decreased 0.9 percent to $6,259.47 per ton or $2.84 per pound. Uruguay showed 7,639.70 tons of dairy products moving to 27 destinations at an average price of $4,508.36 per ton or $2.05 per pound during the period of June 16–June 30. Whole milk powder declined 4.4 percent to $4,373.51 per ton or $1.99 per pound. Skim milk powder gained 6.2 percent to $4,342.11 per ton or $1.97 per pound. Semi-hard cheese declined 4.3 percent to $4,304 per ton or $1.95 per pound. Hard cheese jumped 26.3 percent for the previous period to $5,905.49 per ton or $2.68 per pound Butter increased 1.4 percent to $5,789.47 per ton or $2.63 per pound. Buttermilk declined 6.8 percent to $3,838.42 per ton or $1.74 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $21.55 |
| 6 Month: | $21.37 |
| 9 Month: | $20.85 |
| 12 Month: | $20.49 |
CHEESE
Dairy Market News reports cheese demand in the Midwest as stable, depending on the variety. Spot milk price recently has not had quite the discount it has had with less extra milk attributed to the effects of hot weather. Cheese output has been relatively stable meeting demand expectations as well as building inventory, Uncertainty over demand abounds in the market.
BUTTER
Butter demand is seasonally slowing for both the food service industry as well as for retail outlets. Cream is in demand from both churns and ice cream manufacturers. There are some indications that export demand is showing some signs of slowing. However, butter production is running strong but at lighter levels due to reduced employees. This keeps inventory from building from last year's level.
OUTSIDE MARKETS SUMMARY
July corn gained 7.25 cents closing at $7.40. July soybeans declined 4.50 cents closing at $15.8825 with July soybean meal up $12.80 per ton closing at $491.50. July wheat declined 3.25 cents ending at $7.9825. August live cattle gained $0.20 closing at $136.87. August crude oil gained $0.46 closing at $96.30 per barrel. The DOW declined 209 points ending at 30,773 while the NASDAQ declined 17 points ending at 11,248.
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