MILK
Milk futures showed selling pressure in moderate trading volume. The minor weakness of cheese triggered the selling as maybe prices have reached a threshold for now. Now that prices have weakened, sellers may hold back in anticipation of further weakness. The outlook for milk prices through the end of the year will be assessed due to the release of the June Livestock Slaughter report. Dairy cattle slaughter totaled 186,400 head. This was 29,700 head less than in May and 69,300 head lower than in June 2023. This is the lowest monthly dairy cattle slaughter since June 2008. Lower feed prices, high heifer prices, and extra income from beef-on-dairy calves have substantially impacted culling.
AVERAGE CLASS III PRICES
| 3 Month: | $20.47 |
| 6 Month: | $20.41 |
| 9 Month: | $19.81 |
| 12 Month: | $19.38 |
CHEESE
The June Cold Storage showed that American cheese inventory declined by 11.3 million pounds from May totaling 804.8 million pounds. This was 6% below a year ago. Swiss cheese inventory totaled 22.0 million pounds. This was an increase of 231,000 pounds from May and was 3% below a year ago. Other cheese inventory totaled 596.5 million pounds, down 127,000 pounds from May and 4% below a year ago. Total cheese inventory was 1.423 billion pounds, down 11.2 million pounds from May, and was 6% below June 2023.
BUTTER
Butter inventory declined but remained higher than a year ago. June inventory totaled 373.5 million pounds, down 6.2 million pounds from May, and is 7% above June 2023. This may limit the upside price potential for butter in the near term.
OUTSIDE MARKETS SUMMARY
December corn closed up 2.75 cents per bushel at $4.2075, November soybeans closed up 15.50 cents at $10.7950 and December soybean meal closed up $8.60 per ton at $329.20. September Chicago wheat closed down 9.25 cents at $5.3775. October live cattle closed up $2.33 at $188.60. September crude oil is up $0.61 per barrel at $78.20. The Dow Jones Industrial Average is up 81 points at 39,935 with the NASDAQ down 161 points at 17,182.
