Wednesday Closing Dairy Market Update - Mixed Milk Futures

MILK:

Class III futures settled 17 to 3 cents lower despite cheese prices for both categories closing higher. Butter price was up, while nonfat dry milk held. Class IV was up 9 cents for May and saw no change for June and July. The USDA released the Advanced Prices and Price Factors report this afternoon for the month of June. Price for Base Class I was at $18.01 per cwt, declining $1.56 from the previous month. Base Skim Milk for Class I was at $8.72 per cwt, falling $1.75 from the month prior. Advanced Class III skim milk price was $7.17 per cwt, then Class IV skim milk price was at $8.78 per cwt. Class II skim milk price was $9.48 per cwt.

AVERAGE CLASS III PRICES:

3 Month:	$16.53
6 Month:	$17.46
9 Month:	$17.83
12 Month:	$17.90

CHEESE:

Milk volumes are clearing into Class III operations. In the Midwest, milk availability is going faster than anticipated for milk handlers. Production of American type cheese is steady, while Italian types and Swiss cheese are stronger. Retail demand is strong, and food service demand is level. Menu price inflation has deterred some customers. Barrel producers say demand is steady, though curd demand has softened. Cheese market is reported to have some bearish pressure.

BUTTER:

Butter futures settled $0.35 cents lower to $0.25 cents higher. Nonfat dry milk spot loads of inventory are able to meet current demand and are moving through contracts smoothly. Exports have been reported as moderate, though buyers from Mexico are a little less interested. Dry buttermilk demand is steady this past week. While inventory is slightly lighter, it's still able to meet current demand. There are reports that bookings for Q2 are slower. Exports demand has been active.

OUTSIDE MARKETS SUMMARY:

July corn futures fell 19.75 cents to $5.61.50 per bushel. July soybeans closed down 27 cents lower at $13.3700 per bushel. Soybean meal for July was $1.60 lower at $425.30 per ton. July wheat fell 22 cents to $6.2550 per bushel. June live cattle closed $0.95 higher at $164.83. June crude oil was up $1.88 per barrel at $72.74. The Dow moved up 422 points to 33,434, while NASDAQ was 162 points higher at 12,506.