MILK
It has not been a good week for milk futures as new lows were set on the first four days of the week. Futures today bounced a bit with only nearby months seeing new lows. This certainly does not provide hope for better prices anytime soon. June milk checks will be substantially lower as prices are mostly set by the middle of the month. June Class III futures closed the day at $14.93. Price will move very little from now until the announcement of the Federal Order prices. Class IV price closed the day at $18.11 and much better than Class III. There still is no indication cheese prices have reached a bottom with block cheese supply more available than barrels or maybe the better term would be less in demand, but likely a combination of both. Milk production remains above a year ago as farmers continue to push milk production. Markets will be closed on Monday due to the Juneteenth holiday. Markets will reopen Monday night at 5:00 pm Central time.
AVERAGE CLASS III PRICES
| 3 Month: | $15.47 |
| 6 Month: | $16.68 |
| 9 Month: | $17.12 |
| 12 Month: | $17.34 |
CHEESE
For the week, blocks declined 4.75 cents with 30 loads traded. Barrels declined 4.25 cents with three loads traded. Dry whey remained steady with 31 loads traded. Blocks are at the lowest prices since early May 2020. Yet, there is no indication price has found a bottom. One reason milk futures were stronger in later contacts it the potential milk production will decline as more cows more to slaughter reducing milk output. The longer milk prices remain low, the more cow numbers will decline, and more farms will go out of business.
BUTTER
For the week, butter increased 0.50 cents with 10 loads traded. Grade A nonfat dry milk slipped 0.25 cent with four loads traded. The market was not very exciting this week following the pattern of the past weeks. Butter output is strong with demand steady. There is no supply concern for the foreseeable future. Export demand has slowed significantly.
OUTSIDE MARKETS SUMMARY
July corn closed up 17.00 cents per bushel at $6.4025, July soybeans closed up 38.25 cents at $14.6650 and July soybean meal closed up $22.20 per ton at $416.40. July Chicago wheat closed up 26.50 cents at $6.8800. August live cattle closed up $0.65 at $171.73. July crude oil is up $1.16 per barrel at $71.78. The Dow Jones Industrial Average is down 109 points at 34,299 with the NASDAQ down 93 points at 13,690.
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