MILK
Milk futures had a strong week with June Class III futures moving to the mid-$20 level. July through November contracts closed above the $19 level. Class IV futures had five contacts closing above $21. The strength was unexpected and more dramatic than usual. This certainly changed the outlook for milk prices with USDA increasing the potential for milk prices and milk production. It raised its estimate for milk output by one million pounds, totaling 227.3 billion pounds. The first estimate for 2025 is for production to reach 229.3 billion pounds. Dairy exports on a fat basis were reduced to 11 billion pounds, down 300 million pounds from the April estimate. Ending stocks were raised 400 million pounds to 13.2 billion pounds. Exports on a skim-solid basis were reduced to 49.3 billion pounds, a decrease of 400 million pounds with ending stocks raised to 9.7 billion pounds, up 300 million pounds from April.
USDA raised the Class III milk price by $0.55 to $16.75 per cwt with an initial estimate of $16.30 for 2025. Class IV price was reduced by $0.15 to an average of $20.25 with an initial estimate of $19.95 next year. The all-milk price was increased to $21.20 per cwt this year with an estimate next year of $20.90.
AVERAGE CLASS III PRICES
| 3 Month: | $19.69 |
| 6 Month: | $19.58 |
| 9 Month: | $19.28 |
| 12 Month: | $19.01 |
CHEESE
For the week, blocks increased 19 cents with six loads traded. Barrels increased by 3.25 cents with six loads traded. Dry whey decreased by one cent with 10 loads traded.
USDA increased its estimate of the average cheese price by 7.50 cents from its April estimate to $1.6950 per pound. The initial estimate for 2025 is $1.6650 per pound. The average dry whey price decreased by 2.50 cents to 40 cents per pound. The initial estimate for next year is 37.50 cents per pound.
BUTTER
For the week, butter declined 8.50 cents with 14 loads traded. Grade A nonfat dry milk price increased by 2.25 cents with nine loads traded.
USDA raised its price estimate this year by a penny to $2.9350 per pound. The initial estimate for next year is $2.9150 per pound. The average nonfat dry milk price was reduced by 2 cents to $1.16 per pound this year with the initial estimate next year at 37.50 cents per pound.
OUTSIDE MARKETS SUMMARY
July corn closed up 13.25 cents per bushel at $4.6975, July soybeans closed up 10.50 cents at $12.1900 and July soybean meal closed down $1 per ton at $371.90. July Chicago wheat closed up 26 cents at $6.6350. June live cattle closed up $0.20 at $176.15. June crude oil is down $1 per barrel at $78.26. The Dow Jones Industrial Average is up 125 points at 39,513 with the NASDAQ down 5 points at 16,341.
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