MILK
Traders showed their disappointment over the milk production report showing no indication of heavy culling with cow numbers remaining steady with the April report. The May Livestock Slaughter report showed an increase in slaughter of 5,500 head from April totaling 249,100 head. This was 23,900 more than May 2022. There is usually a decrease in slaughter from April to May indicating slaughter may be increasing. The last time slaughter increased from April to May was in 2017. The milk production report showed steady cow numbers indicating there were sufficient replacements available to take the place of the cull cows. The Global Dairy Trade auction report took place earlier this week with the trade weighted average unchanged from the previous event. There were 20,372 metric tons sold during the session. Anhydrous milk fat increased 0.5% to $4,758 per metric ton or $2.16 per pound. Butter increased 5.5% to $5,379 per metric ton or $2.44 per pound. Cheddar cheese price decreased 3.3% to $4,533 per metric ton or $2.06 per pound. Skim milk powder decreased 2.3% to $2,6567 per metric ton or $1.21 per pound. Whole milk powder remained steady at $3,172 per metric ton or $1.44 per pound. Buttermilk powder and lactose showed no prices.
AVERAGE CLASS III PRICES
| 3 Month: | $15.45 |
| 6 Month: | $16.67 |
| 9 Month: | $17.14 |
| 12 Month: | $17.37 |
CHEESE
The increase of block cheese prices and unfilled bids reaming in both blocks and barrels after the close of spot trading had no impact on the market. Price premium is being taken out of the market as cheese prices continue to chop around without any direction. Retail demand is said to be steady with some areas seeing an increase in overall demand. USDA will release the May Cold Storage report tomorrow. Traders will be interested in whether cheese inventories grew during the month.
BUTTER
Butter is doing what it has been doing since the beginning of the year and that is just remaining choppy in a sideways trading pattern. Buyers and sellers have no reason to change the current market pattern.
OUTSIDE MARKETS SUMMARY
December corn closed down 8.00 cents per bushel at $6.2075, November soybeans closed down 37.50 cents at $13.3950 and July soybean meal closed down $14.50 per ton at $424.70. July Chicago wheat closed up 4.50 cents at $7.3900. August live cattle closed up $1.40 at $171.15. August crude oil is down $3.05 per barrel at $69.48. The Dow Jones Industrial Average is down 5 points at 33,947 with the NASDAQ up 128 points at 13,631.
