MILK
Class III milk futures fell back from the highs but remained at a good level with the July, August, and September contracts above $20.00. The weakness of cheese did not dictate the extreme future losses. However, the market erased the extra premium it contained. The decline of Class IV futures was in line with the weakness of butter with the stronger nonfat dry milk price reducing the losses. This volatility will be seen throughout the year as traders' perceptions are heightened and price movement magnified.
The May Federal Order class prices were announced today. The Class II price was $21.50, up $0.27 from April and $2.39 higher than May 2023. The Class III price was $18.55, up $3.05 from April and $2.44 higher than a year ago. The Class IV price was $20.50, up $0.39 from April and 42.40 above May 2023.
AVERAGE CLASS III PRICES
| 3 Month: | $19.97 |
| 6 Month: | $19.92 |
| 9 Month: | $19.56 |
| 12 Month: | $19.37 |
CHEESE
American-type cheese production totaled 468 million pounds. This was 4.7% below April 2023. This surprise explains why American cheese inventory is not above a year ago. Italian-type cheese production totaled 468 million pounds and was 6.2% above a year ago. Total cheese output reached 1.19 billion pounds and was 1.8% above April. Dry whey production totaled 81.2 million pounds, up 2.1% above a year ago.
BUTTER
Butter production totaled 208 million pounds, up 5.3% above April 2023. Nonfat dry milk production totaled 173 million pounds, down 12.7%. Skim milk powder output totaled 36.3 million pounds, down 20.8% from a year ago. Regular ice cream production reached 64.7 million gallons, up 7.3% from April 2023.
OUTSIDE MARKETS SUMMARY
July corn closed down 3.25 cents per bushel at $4.3925, July soybeans closed down 1.75 cents at $11.7725 and July soybean meal closed up $4.40 per ton at $359.50. July Chicago wheat closed down 11.50 cents at $6.4675. August live cattle closed down $0.58 at $177.88. July crude oil is up $0.82 per barrel at $74.07. The Dow Jones Industrial Average is up 94 points at 38,807 with the NASDAQ up 331 points at 17,188.
