MILK
It was not a good week for milk prices with futures showing further losses. Underlying cheese and butter prices actually increased during the week, but traders do not anticipate prices will remain higher for an extended period. Futures did not follow the underlying strength. Buying interest could begin to improve seasonally, but it most likely will result in prices continuing to chop sideways for a while. Dairy exports in May were lower for the third consecutive month with exports down 13% totaling 210,090 metric tons. Year-to-date exports are 3.8% below the same period a year ago. All categories of dairy products with the exception of whey protein concentrate showed declines. World demand has slowed primarily in Asia along with improved supplies of dairy products in other countries providing more competition for available market share.
AVERAGE CLASS III PRICES
| 3 Month: | $14.68 |
| 6 Month: | $15.91 |
| 9 Month: | $16.46 |
| 12 Month: | $16.77 |
CHEESE
For the week, blocks increased 5.75 cents with 12 loads traded. Barrel increased 3.50 cents with 93 loads traded. Dry whey decreased 1.75 cents with 42 loads traded. Cheese exports in May declined 18.4% from May 2022 totaling 33,149 metric tons. Year-to-date exports are down 3.9%. Whey exports declined 28.9% totaling 39,144 metric tons. This was a decline of 15,950 metric tons from a year ago. Year-to-date exports are down 12.7%. The only bright spot during May was the exports of WPC80+ which had a 17.1% increase from a year ago totaling 6,457 metric tons. Year-to-date exports are up 14.1% from the same period a year ago.
BUTTER
For the week, butter increased 4 cents with 21 loads traded. Grade A nonfat dry milk decreased 3 cents with five loads traded. Butterfat exports totaled 3,635 metric tons, down 28.1% from a year ago. Year-to-date exports are down 38.4% from a year ago. Nonfat dry milk/skim milk exports totaled 79,501 metric tons, down 2.7% with year-to-date exports down 1.7%. Whole milk powder exports declined 478.4% from a year ago totaling 2,720 metric tons with year-to-date export down 490.4%.
OUTSIDE MARKETS SUMMARY
December corn closed down 12.00 cents per bushel at $4.9450, November soybeans closed down 21.75 cents at $13.1775 and December soybean meal closed down $5.50 per ton at $386.30. September Chicago wheat closed down 8.50 cents at $6.4950. August live cattle closed up $2.43 at $177.00. August crude oil is up $1.88 per barrel at $73.68. The Dow Jones Industrial Average is down 187 points at 33,735 with the NASDAQ down 18 points at 13,661.
