MILK
Milk futures had an incredibly strong day in both classes of milk. This was likely driven more so by the strength of dry whey and nonfat dry milk. Dry whey price impacts Class III futures while nonfat dry milk price has a large impact on Class IV. The supply of these products has not changed, but seasonal buying may have begun as buyers look ahead to upcoming demand through the end of the year. South Dairy Trade information was released earlier this week for dairy products moving through ports in Argentina and Uruguay. There were 5,901.10 tons of product moved through ports in Argentina to 14 destinations at an average price of $4,370.57 per ton during the second half of May. Whole milk powder price increased 0.6% for the previous period at $3,992.25 per ton or $1.81 per pound. Skim milk powder increased 2.6% to $3,677.32 per ton or $1.67 per pound. Semin-hard cheese decreased 0.8% to $4,551.17 per ton or $2.07 per pound. Hard cheese decreased 1.4% to $6,295.19 per ton or $2.86 per pound. Butter decreased 1.8% to $4,454.26 per pound or $2.02 per pound. Dairy products moving through Uruguay during the second half of June totaled 6,649.25 tons at an average price of $4,170.93 per ton to 16 destinations. Whole milk powder increased 6.6% to $4,047.05 per ton or $1.84 per pound. Skim milk powder decreased 5.7% to $3,735.49 per ton or $1.70 per pound. Semi-hard cheese increased 3.6% to $5,540.55 per ton or $2.52 per pound. Hard cheese decreased 0.2% to $6,629.02 per ton or $3.01 per pound. Butter price decreased 4.8% to $5,032.50 per ton or $2.29 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $15.15 |
| 6 Month: | $16.35 |
| 9 Month: | $16.81 |
| 12 Month: | $17.06 |
CHEESE
Some retail outlets indicate cheese demand has increased with more orders being noted. Reduced milk output in the Southern states has reduced the heavy milk receipts that have been commonplace for a period. However, in the Upper Midwest, there is still spot milk available at double-digit prices below class. In general, demand for cheese is steady for both retail and food service. Interest seems to be growing from buyers looking ahead to later demand.
BUTTER
Cream supply is tightening to some extent, but there is still sufficient available for all manufacturing needs. Buying for the fourth quarter is ongoing but remains rather light as buyers are not concerned about supply. Price seems to be trending higher as buyers look ahead to upcoming demand and reduced production as summer weather impacts cream supply.
OUTSIDE MARKETS SUMMARY
December corn closed up 16.75 cents per bushel at $5.0050, November soybeans closed up 42.00 cents at $13.6975 and December soybean meal closed up $9.50 per ton at $399.90. September Chicago wheat closed up 7.00 cents at $6.3975. August live cattle closed up $0.03 at $176.90. August crude oil is up $1.14 per barrel at $76.89. The Dow Jones Industrial Average is up 48 points at 34,395 with the NASDAQ is up 220 points at 14,139.
