MILK
Class III milk futures are trying to move higher and seem to be looking for any reason to make that happen. The September and October Class III futures nearly reached $21.00. The block cheese price is at the bottom end of the trading range, but nearby milk futures are at the top end of the range. The anticipation is for milk prices to increase as the summer progresses and milk supply declines. The increase in demand will determine the extent of the rise in prices. Corn futures showed significant strength today instead of the weakness expected Sunday night. Further gains might be seen as the good/excellent condition of the crop declined by 1% last week to 67%. However, it remains 10% above a year ago which may limit the upside price potential. The soybean crop is in 68% good/excellent condition, the same as the previous week. This is 14% better than a year ago. Grain prices are not expected to increase to any great extent, which would leave feed prices reasonable and milk production steady.
AVERAGE CLASS III PRICES
| 3 Month: | $20.28 |
| 6 Month: | $20.28 |
| 9 Month: | $19.70 |
| 12 Month: | $19.34 |
CHEESE
Cheese buyers were more aggressive as they wanted to take advantage of the current prices to increase ownership of supplies. They may not continue to be very aggressive as the cheese supply remains available. However, there may be more interest in buying in preparation for increased demand as the year progresses. Prices remain in a range as buyers and sellers are comfortable at the current level.
BUTTER
The butter prices held steady with business being done. This may indicate to buyers that sellers do not need to reduce the price to move butter. This may bring buyers into the market more aggressively as the price may have reached support. Churning is slowing due to reduced cream availability. This may provide support as inventory may begin to decline.
OUTSIDE MARKETS SUMMARY
December corn closed up 10.25 cents per bushel at $4.1500, November soybeans closed up 32.75 cents at $10.6875 and December soybean meal closed up $11.90 per ton at $319.40. September Chicago wheat closed up 5.25 cents at $5.4800. October live cattle closed up $1.13 at $184.60. September crude oil is down $0.27 per barrel at $78.37. The Dow Jones Industrial Average is up 128 points at 40,415 with the NASDAQ up 281 points at 18,008.
