MILK
There is no bottom for milk prices. The volume of milk available for processing is overwhelming the ability to handle it. There are more reports of milk being dumped. This could change quickly if dry weather continues to impact crops and decreases yields. Culling would increase significantly eventually tightening milk supply. That currently is not a concern in the market right now. Class III futures continue to make new contract lows. South Dairy Trade prices were mostly higher for the two-week period of dairy products moving through ports in Argentina and Uruguay. During April 16-30. There were 6,593.11 tons of dairy products moved to 15 destinations at an average price of $4,109.73 per ton in Argentina. Whole milk powder decreased 2.7% from the previous period at $3,841.09 per ton or $1.74 per pound. Skim milk powder decreased 1.0% to $3,640.36 per ton or $1.66 per pound. Semi-hard cheese increased 0.8% to $4,543.26 per ton or $2.06 per pound. Hard cheese increased 6.0% to $6,525.14 or $2.96 per pound. Butter increased 1.5% to $4,582.07 or $2.08 per pound. There were 8,740.68 tons moving to 18 destinations at an average price of 3,963.58 per ton through ports in Uruguay from May 16-30. Whole milk powder increased 5.1% to $3,897.15 per ton or $1/77 per pound. Skim milk powder increased 10.2% to $3,586.62 per ton or $1.63 per pound. Semi-hard cheese increased 0.6% to $5,102.83 per ton or $2.32 per pound. Hard cheese gained 5.6% to $6,879.05 per ton or $3.12 per pound. Butter decreased 0.3% to $5,202.14 per ton or $2.36 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $15.64 |
| 6 Month: | $16.73 |
| 9 Month: | $17.13 |
| 12 Month: | $17.32 |
CHEESE
Spot milk remains plentiful with discounts of as much as $12.00 under class. With strong milk receipts at the plant level and plentiful spot milk available, there may continue to be pressure on the market. Buyers of cheese are complacent with sellers wanting to move the product.
BUTTER
Butter price continues to chop around and continue to do so as supply and demand are balanced. Reduced international butter demand leaves sufficient supply for the domestic market. Buyers and sellers are comfortable doing business at the current level. Lower component values in milk are not going to change the level of cream supply keeping butter output strong.
OUTSIDE MARKETS SUMMARY
July corn closed down 4.75 cents per bushel at $6.0775, July soybeans closed down 11.00 cents at $13.8825 and July soybean meal closed down $7.80 per ton at $389.70. July Chicago wheat closed down 6.00 cents at $6.3025. August live cattle closed down $2.95 at $170.98. July crude oil is down $1.15 per barrel at $68.27. The Dow Jones Industrial Average is down 233 points at 33,9789 with the NASDAQ up 53 points at 13,626.
