MILK
Milk futures are having a difficult time finding sufficient buying interest to develop an uptrend. The bounce of Class III futures today was likely due to the light holiday trade as underlying cash prices did not provide any direction. Milk production across much of the country is declining. Milk production declines seasonally during the summer but this summer may see further declines as hot weather is forecast in some areas. Those areas may see the potential for records to be broken. Production has decreased to the point where spot milk is unavailable at a discount or in some cases at all depending on the area. The industry is not expecting to see a shortage of milk, but a tightening supply.
AVERAGE CLASS III PRICES
| 3 Month: | $20.10 |
| 6 Month: | $20.02 |
| 9 Month: | $19.56 |
| 12 Month: | $19.31 |
CHEESE
For the week, the block cheese price declined a penny with five loads traded. The barrel cheese price gained 2.25 cents with 14 loads traded. The dry whey price gained 0.25 cent with two loads traded. Spot cheese prices continue to chop around with no solid price direction.
BUTTER
For the week, butter increased by 0.75 cent with three loads traded. The Grade A nonfat dry milk price decreased by 0.25 cent with six loads traded. The butter price is supported as the cream supply tightens and churning slows. There is sufficient supply available to the market, but buyers step up to purchase on price weakness. Demand is steady but expected to improve as the year progresses.
OUTSIDE MARKETS SUMMARY
December corn closed up 4.50 cents per bushel at $4.2400, November soybeans closed up 8.25 cents at $11.2975 and December soybean meal closed up $3.30 per ton at $332.50. September Chicago wheat closed up 16.50 cents at $5.9050. August live cattle closed up $0.50 at $186.43. August crude oil is down $0.72 per barrel at $83.16. The Dow Jones Industrial Average is up 68 points at 39,376 with the NASDAQ up 164 points at 18,353.
