MILK
Class III milk futures extended their gains with September through January contacts posting new contract highs. The August Class III contract is now above the August Class IV contract with the September contract nearly at the same price as the Class IV price. Dry whey was the driver of the market today. The price increase of 5 cents moved the price to the highest level since April 22, 2022. Today's increase was the largest one-day increase since August 5, 2021. The movement of the dry whey price added 30 cents to the Class III price calculation. Declining milk production has not tightened the market significantly, but it may begin to get more attention from the buyers. They may step up and purchase to make sure they have sufficient supply on hand moving through the end of the year. The July Federal Order class prices will be announced on Wednesday with the trade estimating a Class III price of $19.83 and a Class IV price of $21.43.
AVERAGE CLASS III PRICES
| 3 Month: | $21.29 |
| 6 Month: | $20.62 |
| 9 Month: | $19.94 |
| 12 Month: | $19.55 |
CHEESE
Cheese prices remain in a range, but strong support and the steady increase may eventually push prices out of the range and begin to trend higher. Higher milk prices and low grain prices continue to improve the income over feed. This does not look to change anytime soon. USDA will release the June Agricultural Prices report on Wednesday which is expected to show an improved income over feed price than the previous month.
BUTTER
Buyers were more aggressive in the spot market looking for butter to fill orders and increase ownership. This caused the price to increase but the gain was limited. Sellers were willing to bring butter to the market as there are plentiful supplies in inventory. The price is expected to remain in a sideways pattern for the near term.
OUTSIDE MARKETS SUMMARY
December corn closed down 7.25 cents per bushel at $4.0500, November soybeans closed down 18.25 cents at $10.2125 and December soybean meal closed down $5.50 per ton at $318.00. September Chicago wheat closed down 7.00 cents at $5.2400. October live cattle closed up $0.65 at $187.45. September crude oil is down $0.53 per barrel at $75.28. The Dow Jones Industrial Average is up 203 points at 40,743 with the NASDAQ down 223 points at 17,147.
