MILK
Class III futures tried to hold up as the day progressed, but further pressure was put on contracts. The traders had little to influence them to take a price direction as underlying cash held steady. The front-month June contract adjusted higher as traders anticipated the Federal Order class price for the month. July 2 will be the last trading day as traders anticipate a price near $19.94. Milk production is below a year ago, which should support the July price and likely later contracts. Demand is expected to improve as the year progresses as it generally does through the summer and fall. If demand improves more than expected and milk output does not increase, the supply/demand balance might become bullish. However, farmers will respond to higher milk prices by increasing cow numbers or improving milk output.
The May Agricultural Prices report was released today. The average corn price was $4.51, up $0.12 per bushel from April and down $2.03 from May 2023. The premium/ supreme hay price was $276.00 per ton compared to $260.00 in April and $317.00 per ton for May 2023. The All-milk price was $22.00 per cwt., up $1.50 from April compared to $19.10 a year ago. The average soybean meal price is not in this report and will be released by the FSA on Monday. Other prices to note but are not used in calculating income over feed for the Dairy Margin Coverage program. The average soybean price was $11.90 per bushel compared to $11.80 in April and $14.40 for May 2023. The alfalfa hay price for May was $202.00 per ton compared to $195.00 in April and $279.00 per ton a year ago.
AVERAGE CLASS III PRICES
| 3 Month: | $19.81 |
| 6 Month: | $19.97 |
| 9 Month: | $19.63 |
| 12 Month: | $19.41 |
CHEESE
For the week, block cheese gained 6.50 cents with seven loads traded. The barrel cheese price declined 4 cents with five loads traded. The dry whey price gained 2 cents with two loads traded. Spot cheese prices diverged most of the days this week ultimately resulting in blocks moving above barrels.
BUTTER
For the week, butter increased by 3.50 cents with 17 loads traded. The Grade A nonfat dry milk price declined 2.25 cents with 24 loads traded. Butter may move back up to the previous high of $3.1625. Buyers have turned more aggressive with sellers holding for higher prices.
OUTSIDE MARKETS SUMMARY
September corn closed down 15.00 cents per bushel at $4.0750, November soybeans closed down 0.75 cent at $11.0400 and December soybean meal closed down $3.00 per ton at $335.50. September Chicago wheat closed down 6.00 cents at $5.7350. August live cattle closed down $1.03 at $185.43. August crude oil is down $0.28 per barrel at $81.46. The Dow Jones Industrial Average is down 45 points at 39,119 with the NASDAQ down 126 points at 17,733.
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