MILK
There was some life in milk futures this week as spot prices moved higher. After a prolonged period of depressed prices, we can possibly see some light at the end of the tunnel. However, prices may not trend higher consistently as we have already seen this week. Milk production is variable with some areas seeing a decrease in milk receipts at the plant level while others still maintain steady production. Milk output will decrease as the summer progresses as it usually does. This year might see production decrease more rapidly if culling increases significantly. However, if prices are turning higher and the outlook for milk prices improves, culling will slow as optimism increases and farmers will want to keep barns full. The U.S. City Average Retail price for a gallon of whole milk in June was $3.99, down $0.05 from May and down $0.16 per gallon from a year ago. Process cheese price declined $0.07 per pound from May to an average of $4.70. This compares to $4.51 a year ago. Natural cheese averaged $5.68, down $0.16 per pound from May and down $0.10 from June 2022. A half-gallon of ice cream in June cost $5.81, up slightly from May and up $0.27 from June 2023.
AVERAGE CLASS III PRICES
| 3 Month: | $14.94 |
| 6 Month: | $16.18 |
| 9 Month: | $16.71 |
| 12 Month: | $17.00 |
CHEESE
Block cheese finally found some strength this week gaining 8.75 cents with 22 loads traded. Barrels increased 1.25 cents with 53 loads traded. Dry whey increased 2 cents with 48 loads traded. Buyers may have become more interested in purchasing ahead for upcoming demand. This has increased the buying interest of some who have been purchasing on an as-needed basis. However, price is not expected to continue to trend higher without any headwinds. That has been evident this week as prices moved both higher and lower.
BUTTER
Butter seems to have found a bit more strength as price has been moving higher. Churning is strong but is beginning to slow as cream supply is tightening as the summer progresses. This is seasonal and does not indicate that butter supply will tighten. For the week, butter increased 7 cents with 45 loads traded. Grade A nonfat dry milk increased 1.75 cents with 11 loads traded.
OUTSIDE MARKETS SUMMARY
December corn closed up 13.25 cents per bushel at $5.1375, November soybeans closed up 1.00 cent at $13.7075 and December soybean meal closed up $1.10 per ton at $401.00. September Chicago wheat closed up 21.75 cents at $6.6150. August live cattle closed up $3.28 at $180.18. August crude oil is down $1.60 per barrel at $75.29. The Dow Jones Industrial Average is up 114 points at 34,509 with the NASDAQ down 25 points at 14,114.
