MILK
Class III futures closed the week lower with substantial losses in the June and July contracts compared to the close of last week. The June Class III contract had a price swing from the high to the low of $1.76. In contrast, Class IV futures showed strong gains from last week's close. The June Class IV contract price range from the high to the low was $0.28. The June Class IV contract closed $1.37 higher than the June Class III contract. Cheese and dry whey spot prices increased this week while butter and nonfat dry milk prices declined.
Class III milk futures were impacted significantly in response to the milk production report released on Monday. It caused buyers of cheese to step back which affected Class III futures. The report did not negatively affect the Class IV futures as butter buyers did not return from the market. Milk production in April was lower than a year ago but stronger than expected.
AVERAGE CLASS III PRICES
| 3 Month: | $19.50 |
| 6 Month: | $19.66 |
| 9 Month: | $19.42 |
| 12 Month: | $19.21 |
CHEESE
For the week, blocks declined 7.50 cents with 37 loads traded. Barrels declined 14.50 cents with 19 loads traded. Dry whey declined 1.50 cents with 12 loads traded. The April Cold Storage report showed that American cheese stocks were unchanged from a year ago totaling 839.2 million pounds. Inventory increased by 10.6% from March. Swiss cheese inventory increased by 230,000 pounds totaling 22.1 million pounds, up 2% from April 2023. Total cheese stocks decreased by 5.2 million pounds, totaling 598.4 million pounds. Total cheese inventory reached 1.460 billion pounds, up 5.6 million pounds from March, but down 1% from a year ago.
BUTTER
For the week, butter increased by 5.50 cents with five loads traded. Grade A nonfat dry milk price gained one cent with 24 loads traded. Butter inventory in April jumped 44.0 million pounds totaling 361.3 million pounds, up 9% above a year ago. This may limit the upward price potential in the near term.
OUTSIDE MARKETS SUMMARY
July corn closed up 0.75 cent per bushel at $4.6475, July soybeans closed up 8.75 cents at $12.4800 and July soybean meal closed up $9.80 per ton at $386.50. July Chicago wheat closed down 0.75 cent at $6.9725. August live cattle closed up $0.05 at $181.13. July crude oil is up $0.85 per barrel at $77.72. The Dow Jones Industrial Average is up 4 points at 39,070 with the NASDAQ up 185 points at 16,921.
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