MILK
Milk is plentiful for all classes which has kept pressure on milk prices. Hotter weather is affecting some areas of the country with more impact likely to be felt during the month of July. This, along with increased culling, should impact the volume of milk available. The effect of hot weather is uncertain as there have been great strides made over the years to keep cows cool and feed intakes high. South Dairy Trade information was released earlier this week. Dairy products moved through ports in Argentina during the first half of May totaled 5,776.56 tons to 19 destinations at an average price of $4,277.57 per ton. Whole milk powder increased 3.3% from the previous report to $3,969.99 per ton or $1.80 per pound. Skim milk powder declined 1.5% to $3,585.20 per ton or $1.63 per pound. Semi-hard cheese increased 0.9% to $4,585.20 per ton or $2.08 per pound. Hard cheese declined 2.1% to $6,386.17 per ton or $2.90 per pound. Butter declined 1.0% to $4,538.01 per ton or $2.06 per pound. Uruguay reported 8,065.50 tons of dairy products moving during the first half of June to 18 destinations at an average price of $3,932.63 per ton. Whole milk powder declined 2.6% to $3,795.54 per ton or $1.72 per pound. Skim milk powder increased 10.5% to $3,962.31 per ton or $1.80 per pound. Semi-hard cheese increased 4.8% to $5,349.75 per ton or $2.43 per pound. Hard cheese decreased 3.5% to $6,641.09 per ton or $3.02 per pound. Butter increased 1.6% to $5,284.60 per ton or $2.40 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $14.94 |
| 6 Month: | $16.15 |
| 9 Month: | $16.69 |
| 12 Month: | $16.97 |
CHEESE
There are reports of some areas seeing steady demand from food service and lighter demand through retail. Others indicated retail demand is improving. This may be variety specific. Overall, demand has not been able to absorb the extra product currently available. Sellers continue to bring cheese to the spot market with the need to sell even if it means having to lower offers to move it rather than let it remain in inventory.
BUTTER
Price remained steady during spot trading as buyers and sellers took care of business without fanfare. The market has little direction other than sideways. Hot weather will eventually impact cream supply and reduce churning. However, that will not take place overnight leaving butter price choppy.
OUTSIDE MARKETS SUMMARY
December corn closed down 8.25 cents per bushel at $5.2850, November soybeans closed up 0.75 cent at $12.6575 and December soybean meal closed up $2.50 per ton at $380.50. September Chicago wheat closed down 2.25 cents at $6.6750. August live cattle closed up $0.63 at $174.50. August crude oil is up $0.30 per barrel at $69.86. The Dow Jones Industrial Average is up 270 points at 34,122 with the NASDAQ unchanged at 13,591.
