MILK
After quite a bit of volatility, Class III futures closed higher for the week. Emotions ran rampant with heavy selling in futures during the week even though block cheese prices did not decline. The weakness of barrels triggered the idea buyers reached a threshold and cheese prices would fall back. That attitude changed today as both blocks and barrels moved higher. There will be a large difference between the July milk price and the August milk price if underlying cash prices hold. July will cease trading next week Tuesday with the Federal Order prices to be announced on Wednesday. August Class III futures are currently about $3.50 higher than July. USDA released the June Agricultural Prices report today. The average corn price was $6.49, down $0.05 per bushel from May. This compared to $7.38 in June 2022. Premium/ supreme hay price averaged $310.00 per ton, down $7.00 per ton from May. This compares to an average price last year of $277.00 per ton. The average soybean meal price has not yet been released by the FSA and likely will not be published until Monday. That will be needed before the income over feed price can be calculated for the Dairy Margin Coverage program. Another price to take note of is the average soybean price was $14.20, down $0.20 from May. This compares to $16.40 a year earlier. The alfalfa hay price in June was $263.00 per ton, down $16.00 per ton from May. This compares to $245.00 per ton a year earlier.
AVERAGE CLASS III PRICES
| 3 Month: | $16.26 |
| 6 Month: | $17.34 |
| 9 Month: | $17.65 |
| 12 Month: | $17.83 |
CHEESE
For the week, block cheese price increased 12.50 cents with eight loads traded. Barrels increased 10.75 cents with eight loads traded. Dry whey decreased 0.25 cent with 19 loads traded. It was surprising Class III futures did not gain more than they did with the gains of cash. The action today dispelled the concern of cheese prices falling back. This should provide continued support next week.
BUTTER
For the week, butter gained 9.75 cents with 25 loads traded. Grade A nonfat dry milk increased 4 cents with 14 loads traded. Price is trending higher fueled by a tightening cream supply reducing output as well as seasonal buying.
OUTSIDE MARKETS SUMMARY
December corn closed down 12.00 cents per bushel at $5.3025, November soybeans closed down 15.50 cents at $13.8250 and December soybean meal closed down $9.80 per ton at $405.80. September Chicago wheat closed down 8.50 cents at $7.0425. October live cattle closed up $0.10 at $179.60. September crude oil is up $0.59 per barrel at $80.68. The Dow Jones Industrial Average is up 177 points at 35,459 with the NASDAQ up 267 points at 14,317.
