MILK:
Class III was 8 to 2 cents lower, while Class IV was unchanged to a penny higher. Class IV futures continue to stay above Class III. Spot cheese price declined after their gain yesterday, supporting lower Class III price. Other spot categories were unchanged. Class IV hasn't really seen much movement in settled prices. Farm level milk output has been firm, supplying end users with plenty of supply. Demand for all Classes continues to keep steady.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.89 |
| 6 Month: | $18.46 |
| 9 Month: | $18.66 |
| 12 Month: | $18.63 |
CHEESE:
Production of American and Italian type cheeses is strong, and stocks of Cheddar and Colby are steadily rising. Food service demand has quieted down as restaurant prices are on the higher side. Retail demand is steady to stronger. Cheese exports have slightly increased. Demand for Mexico and South America are stronger to steadier, and there is a little more interest in Q4 bookings from Asian markets. It's reported that contract sales are pulling heavy on inventories for the month of May, but overall inventory levels are able to meet current spot market demand.
BUTTER:
Butter futures were 1.72 cents lower to 0.35 cents higher Cream is readily available, letting butter plants increase their inventory. Production has said that most plants are churning seven days a week. Others are selling surplus cream on the spot market. Food service demand is quiet for now, while retail demand is steady. Exports to Canada have seen a slight increase. In general, butter exports have been steady to lighter. Salted butter demand has seen some increase, shifting production from unsalted butter.
OUTSIDE MARKETS SUMMARY:
July corn was up 1.25 cents to close at $6.4650. July soybeans moved a half cent higher to $14.4850. Soybean meal for July was down 30 cents to $427.30. July wheat increased 5.25 cents to $6.3150. June live cattle closed down at $151.57. June crude oil is down 2 cents to $68.58 per barrel. The Dow fell 286 points to 33,127, while Nasdaq moved 53 points lower to 11,972.
