MILK
Class III milk futures lost most or all of what was gained yesterday. The weakness of cheese prices today was far less than the gains seen on Thursday, yet futures took away the strength. Market fundamentals do not indicate there may be a substantial decline in prices in the near term nor do they indicate a sustained increase in prices. Milk production is holding or declining depending on the area of the country. Components have been holding well but are beginning to decline in some areas due to the summer weather.
The U.S. City Average Retail price for whole milk in May was $3.86 per gallon. This was down 0.50 cent from April and compares to the price of $4.04 per gallon in May 2023. The average processed cheese price was $4.82 per pound, up $0.04 from April and compared to $5.84 for May 2023. The average price for natural cheese increased by $0.04 from April compared to $5.84 a year ago.
AVERAGE CLASS III PRICES
| 3 Month: | $20.57 |
| 6 Month: | $20.36 |
| 9 Month: | $19.88 |
| 12 Month: | $19.63 |
CHEESE
For the week, blocks jumped 12.50 cents with 17 loads traded. Barrel cheese increased by 6.50 cents with 13 loads traded, The Dry whey price increased by 0.50 cent with three loads traded. Buyers were more aggressive as there is a growing concern over the cheese supply late in the year. Buyers that have been holding back are stepping up to make sure they have sufficient supply on hand. This may push prices higher than they need to be in the near term as buyers try to outbid each other on the spot market.
BUTTER
For the week, butter price declined 0.25 cent with 10 loads traded. The Grade A nonfat dry milk price decreased by 0.25 cent with 26 loads traded. There has been quite a bit of trading active in spot nonfat dry milk over the past two weeks but there has been limited price movement for spot nonfat dry milk.
OUTSIDE MARKETS SUMMARY
July corn closed down 8.50 cents per bushel at $4.5000, July soybeans closed down 9.75 cents at $11.7975 and July soybean meal closed up $.10 per ton at $368.40. July Chicago wheat closed down 7.25 cents at $6.1275. August live cattle closed up $3.68 at $183.18. July crude oil is down $0.17 per barrel at $78.45. The Dow Jones Industrial Average is down 58 points at 38,589 with the NASDAQ up 21 points at 17,689.
