MILK
Class III milk futures did not decline as much as they did on Tuesday, but the selling pressure continued. The further weakness of spot cheese prices kept pressure on the market. Milk production in the Eastern region is reportedly flat compared to last week. This does not necessarily indicate spring flush has run its course but is slowing. It is reported that component values are stronger than usual which improves cheese yields and the availability of cream. Sufficient milk is available for bottling and manufacturing. The June Class I milk price was announced at $20.08, an increase of $1.62 from May and a gain of $2.07 from a year ago.
The Global Dairy Trade auction trade-weighted average increased 3.3% from the previous event. Anhydrous milk fat increased by 3.5% to $7,365 per metric ton or $3.34 per pound. Butter increased 5.1% to $6,931 per metric ton or $3.14 per pound. The cheddar cheese price remained steady at $4,239 per metric ton or $1.92 per pound. The lactose price gained 8.1% to $795 per metric ton or $0.36 per pound. Mozzarella jumped 9.8% to $4,215 per metric ton or $1.91 per pound. Skim milk powder increased by 3.5% to $2,629 per metric ton or 41.19 per pound. Whole milk powder increased 2.9% to $3,408 per metric ton or $1.54 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $19.45 |
| 6 Month: | $19.47 |
| 9 Month: | $19.26 |
| 12 Month: | $19.07 |
CHEESE
It is reported that cheese demand is strong this week heading into the Memorial Day weekend. Hopefully, this demand will remain strong and increase moving forward. Spot milk prices strengthened slightly ranging from $2.00 to $0.50 under class. Component values are stronger than a year earlier keeping cheese yields strong.
BUTTER
Butter took a breather today with no trading activity. Neither buyers nor sellers show up during spot trading today. They may have been waiting for either buyers or sellers to tip their hand before stepping into the market. Price is expected to be supported with only minor retracements, if and when they take place.
OUTSIDE MARKETS SUMMARY
July corn closed up 3.25 cents per bushel at $4.6125, July soybeans closed up 10.00 cents at $12.4625 and July soybean meal closed up $5.90 per ton at $378.20. July Chicago wheat closed down 4.50 cents at $6.9300. August live cattle closed up $1.25 at $181.68. July crude oil is down $1.09 per barrel at $77.57. The Dow Jones Industrial Average is down 202 points at 39,671 with the NASDAQ down 31 points at 16,802.
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