MILK
Milk futures reached for the sky today with July and later Class III contracts making new highs and July and later Class IV contracts making new highs. The August Class III contract closed above $21.00. The August, September, October, and November Class IV contracts closed above $22.00. The market has turned bullish, and it is still the beginning of June. This could increase the buying interest in the cash market as fear of higher prices will be prevalent in buyers' minds.
The Global Dairy Trade auction trade-weighted average increased for the fifth consecutive event with a gain of 1.7% to today's auction. There were 164 bidders with 17,637 metric tons sold. Anhydrous milk fat price increased by 0.9% to $7,417 per metric ton or $3.36 per pound. The butter price increased 1.7% to $6,864 per metric ton or $3.11 per pound. Buttermilk powder jumped 10.4% to 42,845 per metric ton or $1.39 per pound. Cheddar cheese price increased by 0.2% to $4,248 per metric ton or 41.93 per pound. Lactose decreased by 1.9% to $792 per metric ton or $0.36 per pound. Skim milk powder increased 3.0% to $2,722 per metric ton or $1.23 per pound. Whole milk powder increased 1.7% to $3,478 per metric ton or $1.58 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $20.60 |
| 6 Month: | $20.50 |
| 9 Month: | $19.99 |
| 12 Month: | $19.82 |
CHEESE
Cheese prices remaining steady provided support to Class III futures with the gain of dry whey providing the buying interest to push futures higher. The outlook for the year has improved immensely. There is potential for further strength if the current attitude prevails. USDA will release the April Dairy Products report tomorrow.
BUTTER
Butter price moved to the highest level since November 1, 2023. The price is only 34 cents from the record high of last year and it is only the beginning of June. Butter stocks are higher than a year ago, but the market does not seem to care as demand is improving, which could draw down stocks quickly. Buyers are aggressively purchasing for later demand.
OUTSIDE MARKETS SUMMARY
July corn closed down 1.00 cent per bushel at $4.4250, July soybeans closed down 5.50 cents at $11.7900 and July soybean meal closed down $4.40 per ton at $355.10. July Chicago wheat closed down 14.50 cents at $6.5825. August live cattle closed down $0.43 at $178.45. July crude oil is down $0.97 per barrel at $73.25. The Dow Jones Industrial Average is up 140 points at 38,711 with the NASDAQ up 28 points at 16,857.
