Monday Closing Dairy Market Update - June Dairy Exports Remained Very Strong

MILK

Class IV futures were extremely bearish due to the weakness of butter moving price back down into the range and the continued weakness of nonfat dry milk. November Class IV futures were hit the hardest with price falling 79 cents closing at $20.31 with the September contract falling 77 cents ending at $22.60. Volume was very light with November showing the most trades with a volume of 20. September declined on an offer with no actual trades taking place. The exchange settled the price for the day based on the lowest offer. Class III futures fared better with September closing 11 cents higher. The other contracts showed moderate losses. Dairy exports in June increased 9% despite macroeconomic issues being faced. Total exports on a milk solids basis jumped 9.0% over June 2021. This is absorbing some of the product that is available due to some slowing of demand.

AVERAGE CLASS III PRICES

3 Month:	$21.17
6 Month:	$20.95
9 Month:	$20.50
12 Month:	$20.17

CHEESE

Cheese exports in June totaled 43,908 metric tons, up 30.8% compared to June 2021. Year-to-date exports of cheese are up 17% compared to the same period last year. Whey exports totaled 56,385 metric tons, up 22.8% compared to a year ago with year-to-date exports up 1.7%. Even with issues that have plagued shipping and labor, product is being moved out of the country. This is very important at a time when demand is slowing domestically.

BUTTER

Butter exports increased 82% in June compared to June 2021 totaling 7,417 metric tons with year-to-date exports up 43.5%. Nonfat dry/skim milk powder exports declined 14.0% compared to a year ago totaling 69,200 metric tons Year-to-date exports are 8.3% below the same period last year. Whole milk powder exports were 83% higher than a year ago totaling 3,735 metric tons with year-to-date exports up 6.1%.

OUTSIDE MARKETS SUMMARY

September corn slipped 1.75 cents ending at $6.0850. August soybeans gained 4.75 cents closing at $16.1950 with August soybean meal down $0.40 ending at $498.70 per ton. September wheat gained 4 cents closing at $7.7975. August live cattle gained $0.47 closing at $138.35. September crude oil gained $1.75 ending at $90.76 per barrel. The DOW gained 29 points closing at 32,833 while the NASDAQ slipped 13 points closing at 12,644.