MILK:
There was some volatility in the nearby months as there was anticipation cheese prices could see some strength due to the unfilled bids at the close of spot trading Thursday. That provided some early support, which then gave way to mixed futures after spot trading. Both Class III and Class IV futures ending mixed as underlying cash did not provide much reason for any significant moves. The June Class III contract adjusted 4 cents higher after the weekly AMS numbers were calculated. The last trading day for June contracts on Tuesday with the Federal Order prices announced on Wednesday. The Class I price for the month of July was announced at $17.32, down $0.69 from June. This is the lowest Class I price since October 2021. Milk production continues to remain strong with cow numbers holding above a year ago. Hot weather may be having some impact on milk production, but production may not be impacted as much as it had been in years past due to advancements in keeping cows cool. Milk components have been decreasing slowly, which will impact cheese yield and cream supply.
AVERAGE CLASS III PRICES:
| 3 Month: | $15.47 |
| 6 Month: | $16.67 |
| 9 Month: | $17.14 |
| 12 Month: | $17.37 |
CHEESE:
The May Cold Storage report was friendly to the market. It may not trade that way in the near term as traders are bearish and sellers continue to bring cheese to the spot market. The market will need to prove itself before the attitude will change and buyers will become more aggressive in the long term. Cheese stocks increased from April but remained below a year ago. American cheese inventory increased 10.6 million pounds totaling 852.5 million pounds which was 1% below a year ago. Swiss cheese inventory increased 2.0 million pounds totaling 23,543 million pounds and was 9% below a year ago. Other cheese increased 9.4 million pounds totaling 614.4 million pounds and 2% below a year ago. Total cheese inventory increased 21.9 million pounds totaling 1.490 billion pounds, down 1% from a year ago. This is considered friendly to the market. For the week, blocks increased 3 cents with 14 loads traded. Barrels decreased 2.50 cents with three loads traded. Dry whey decreased a penny with 31 loads traded.
BUTTER:
Butter inventory increased 35.2 million pounds totaling 366.7 million pounds. This is 14% above a year ago. This is considered neutral to the market and will keep it trending sideways. For the week butter increased 5.50 cents with 10 loads traded. Grade A nonfat dry milk price decreased 2.50 cents with five loads traded.
OUTSIDE MARKETS SUMMARY:
December corn closed down 32.75 cents per bushel at $5.8800, November soybeans closed down 29.50 cents at $13.1000 and December soybean meal closed down $17.70 per ton at $398.30. September Chicago wheat closed down 6.25 cents at $7.4650. August live cattle closed down $0.38 at $170.78. August crude oil is down $0.35 per barrel at $69.16. The Dow Jones Industrial Average is down 219 points at 33727 with the NASDAQ is down 138 points at 13,493.
