MILK
Both Class III and Class IV futures increased this week with Class III outpacing Class IV. Cheese prices showed greater gains with dry whey adding to the strength. September and October Class III futures closed the week solidly above $21.00 with prices nearing the same level as Class IV contracts. Traders were bullish as dry whey showed strength. Fluid milk sales in May were above a year ago at 0.3% higher, which has been rare for quite some time. Sales of whole milk increased by 1.8%. Flavored whole milk sales declined by 12.9%. Reduced fat was down by 5.4%; low fat was down by 1.8%; fat-free skim declined by 13.3%; flavored fat-reduced milk increased by 3.5%; buttermilk declined by 1.0% with other fluid milk product sales up 45.0%. Organic whole milk sales increased by 20.2%; organic flavored whole milk jumped by 31.1%; organic reduced fat milk increased by 4.9%; organic low fat declined by 11.4%; organic fat-free skim milk declined by 6.0%. Flavored fat-reduced sales increased by 1.1% with other organic fluid milk product sales up 71.9%.
AVERAGE CLASS III PRICES
| 3 Month: | $20.55 |
| 6 Month: | $20.51 |
| 9 Month: | $19.91 |
| 12 Month: | $19.50 |
CHEESE
For the week, blocks increased by 6.50 cents with 15 loads traded. The barrel price increased by 6.25 cents with 10 loads traded. The dry whey price increased by 5.25 cents with one load traded. The increase in dry whey this week provided a substantial amount of support. Each 1-cent move in dry whey equates to 6 cents in the Class III price. The increase this week added 31.50 cents to the Class III price calculation. Dry whey moved to the highest price since May 11, 2022.
BUTTER
For the week, butter increased by 1.50 cents with 17 loads traded. Grade A nonfat dry milk gained 3.50 cents with 26 loads traded. Butter price continues to move in a tight range. June inventory was 7% above a year ago and may limit the upside potential.
OUTSIDE MARKETS SUMMARY
December corn closed down 10.75 cents per bushel at $4.1000, November soybeans closed down 31.00 cents at $10.4850 and December soybean meal closed down $4.50 per ton at $324.70. September Chicago wheat closed down 14.25 cents at $5.2350. October live cattle closed down $0.05 at $188.55. September crude oil is down $1.83 per barrel at $76.45. The Dow Jones Industrial Average is up 654 points at 40,589 with the NASDAQ up 176 points at 17,358.
