MILK
Traders were uncertain as to the price direction of underlying cash. Once trading took place, weakness permeated through futures with losses across the board. However, as the day progressed buying interests surfaced with most contracts through the end of the year posting gains. The trading activity showed strength but that may not be where the market settles as the CME settles contracts around 2 p.m. CDT even though trading continues for another two hours. Tuesday is the last trading day for the June contracts with the Federal Order prices to be announced on Wednesday. The FSA released the May average soybean meal price at $388.65 per ton. This is an increase of $30.97 per ton from April and results in an income over feed price of $10.52 per cwt. This is the highest income over feed price since November 2022. This leaves no payment under the Dairy Margin Coverage program.
AVERAGE CLASS III PRICES
| 3 Month: | $19.81 |
| 6 Month: | $20.01 |
| 9 Month: | $19.64 |
| 12 Month: | $19.39 |
CHEESE
The block cheese price remains rangebound while the barrel cheese prices continue to decline. The barrel price is down to the lowest level since April 29 and has fallen 4.75 cents below blocks. The price is not low enough to generate aggressive buying interest as there is sufficient supply available for buyers. Demand will need to improve to increase buying interest. Inventory is below a year ago, but sufficient to leave traders with limited concern over present supplies.
BUTTER
Butter showed more buying interest in the spot market. There is potential for the price to move back to the high of $3.1624 from June 4. Demand is showing greater support coming from the retail sector. Demand from the food service industry is not quite as strong as hoped for this time of year. The price is in an uptrend and should remain that way for a time. However, that may not be without setbacks at times as traders take care of business.
OUTSIDE MARKETS SUMMARY
December corn closed down 0.25 cent per bushel at $4.2050, November soybeans closed up 7.00 cents at $11.1100 and December soybean meal closed down $2.90 per ton at $332.60. September Chicago wheat closed up 16.75 cents at $5.9025. August live cattle closed down $1.15 at $184.28. August crude oil is up $1.95 per barrel at $83.49. The Dow Jones Industrial Average is up 51 points at 39,170 with the NASDAQ up 147 points at 17,879.
