MILK
Class III futures were finally able to close in positive territory to finish out the week. Class IV futures were mixed. Milk futures saw some substantial pressure through the week as underlying spot prices were mostly lower. The May Agricultural Prices report showed a decrease in most categories of prices used in determining an income over feed price for the Dairy Margin Coverage program. The average corn price was $6.54, down $0.16 from April and down $0.72 cents from May 2022. Premium/supreme hay was $317.00 per ton, up $2.00 per ton from April and up $43.00 per ton from a year ago. The All-milk price was $19.30, down $1.30 from April and down $7.90 per cwt from a year ago. The FSA has not yet released the average soybean meal price for the month, but I expect it to be lower than the previous month and last year. This is needed to determine the payment farmers will receive under the Dairy Margin Coverage program. Other commodities of interest in the report would be soybeans with an average price of $14.40, down $0.50 from April and down $1.70 per bushel from a year ago. Alfalfa hay price was $279 per ton, down $8.00 from the previous month, but up $35.00 per ton from a year ago. The Planted Acreage report showed a huge surprise for the trade with corn planted acreage at 94.1 million and soybean acres at 83.50 million. Corn acres increased 2.1 million from the March report with soybean acres down 4.0 million. This caught the trade totally off guard resulting in December corn down 33.75 cents and soybeans up 77.50 cents.
AVERAGE CLASS III PRICES
| 3 Month: | $15.02 |
| 6 Month: | $16.20 |
| 9 Month: | $16.72 |
| 12 Month: | $16.99 |
CHEESE
For the week, blocks declined 7 cents with 49 loads traded. Barrels declined 15.50 cents with 56 loads traded. Dry whey declined 2.50 cents with 62 loads traded. It appears the lower the prices move, the greater the selling interest. The abundance of dairy products keeps sellers wanting to move it to the market either through regular channels or the daily spot market.
BUTTER
For the week, butter increased 2 cents with nine loads traded. Grade A nonfat dry milk declined 1.50 cents with 17 loads traded. The decline of nonfat dry milk more than offset the gain of butter resulting in lower Class IV futures.
OUTSIDE MARKETS SUMMARY
December corn closed down 33.75 cents per bushel at $4.9475, November soybeans closed up 77.50 cents at $13.4325 and December soybean meal closed up $16.80 per ton at $397.30. September Chicago wheat closed down 16.50 cents at $6.5100. August live cattle closed up $2.68 at $177.18. August crude oil is up $0.78 per barrel at $70.64. The Dow Jones Industrial Average is up 285 points at 34,408 with the NASDAQ up 197 points at 13,788.
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