MILK
Class III milk futures moved significantly higher due to the strength of underlying cash. This moved July through October futures deeper into the $20.00 price range. New contract highs were again seen in August and late contracts. Interestingly, Class III futures are higher than when cheese prices were significantly higher. Traders have become more bullish for the longer term. Class IV futures continue to hold back from following the butter price. It was anticipated futures would move strongly higher if the butter price increased further, but that has not been the case. The July contract showed the greatest gain with only a few contract months traded. Most futures contracts closed unchanged.
The April average soybean meal price was released at $357.68 per ton. This is $4.49 per ton lower than March and $99.57 per ton lower than April 2023. The April income over feed price was $9.60 per cwt. There will be no Dairy Margin Coverage program payment for the month. Tuesday is the final trading day for April dairy futures and options with the Federal Order prices to be announced on Wednesday.
AVERAGE CLASS III PRICES
| 3 Month: | $19.69 |
| 6 Month: | $20.15 |
| 9 Month: | $19.85 |
| 12 Month: | $19.57 |
CHEESE
Cheese prices increased but remain significantly below the highs of a few weeks ago. There is a possibility prices could move back to those levels over time. Cheese demand is improving but will need to increase further to keep inventory from increasing. More milk is moving to manufacturing increasing the amount of cheese available for demand. Milk components are holding well and at levels higher than a year ago. This increases cheese yields.
BUTTER
The butter price is back to the level it was on May 24 and is the highest price this year. The price movement back to this level may generate further buying interest as buyers want to purchase before prices increase. This may generate increased buying interest and higher prices.
OUTSIDE MARKETS SUMMARY
July corn closed down 2.75 cents per bushel at $4.4350, July soybeans closed down 20.50 cents at $11.8450 and July soybean meal closed down $5.20 per ton at $359.50. July Chicago wheat closed down 5.75 cents at $6.7275. August live cattle closed up $0.43 at $178.88. July crude oil is down $2.77 per barrel at $74.22. The Dow Jones Industrial Average is down 115 points at 38,571 with the NASDAQ up 94 points at 16,829.
