MILK
Class III milk futures closed under significant pressure despite an increase in the barrel cheese price. Class IV futures closed steady to lower. June futures and options finished trading today with the Federal Order Class prices to be announced on Wednesday. The July contract takes over as the lead month. The Global Dairy Trade auction showed the trade-weighted average price declining 6.9%, the largest decline since August 2023. There were 24,138 metric tons sold at an average price of $3,782 per metric ton. Anhydrous milk fast declined 10.7% from the previous event at $6,517 per metric ton or $2.96 per pound. The butter price declined 10.2% to $6,546 per metric ton or $2.97 per pound. Buttermilk powder declined 5.1% to $2,672 per metric ton or $1.21 per pound. Cheddar cheese price declined 6.9% to $3,980 per metric ton or $1.81 per pound. Lactose increased by 0.6% to $804 per metric ton or $0.36 per pound. Skim milk powder declined 6.1% to $2,586 per metric ton or $1.17 per pound. Whole milk powder declined 4.3% to $3,218 per metric ton or $1.46 per pound. The mozzarella price was unchanged at $4,260 per metric ton or $1.93 per pound.
USDA has released its recommendations for changes to the Federal Milk Marketing Order system. Some of the recommendations include the adjustment of the milk composition factors. Protein would change from 3.1% to 3.3%, other solids would increase from 5.9% to 6.0%. And nonfat solids would change from 9.0% to 9.3%. The proposal would also remove the barrel cheese price from the weekly mandatory reporting program using only the block cheese price to determine the monthly average cheese price. The proposal also recommends raising the make allowance for cheese, butter, nonfat dry milk, dry whey, and butterfat. Once it is published in early July there will be a 60-day public comment period followed by an evaluation period before a Final Rule is published and a vote is taken.
AVERAGE CLASS III PRICES
| 3 Month: | $19.72 |
| 6 Month: | $19.73 |
| 9 Month: | $19.37 |
| 12 Month: | $19.18 |
CHEESE
Cheese prices continue to chop around providing no solid price direction. Buyers and sellers continue to do business as supply and demand dictates. Blocks remain above barrels as blocks are in a better demand position. Barrels had been in tighter supply for a time but that has changed as barrels supply is sufficient for demand.
BUTTER
The butter price remained steady with support remaining under the market. There is little downside price weakness anticipated as the summer progresses. Inventory is expected to decline as the cream supply tightens and demand improves.
OUTSIDE MARKETS SUMMARY
December corn closed up 0.75 cent per bushel at $4.2125, November soybeans closed up 2.00 cents at $11.1300 and December soybean meal closed down $4.30 per ton at $328.30. September Chicago wheat closed down 9.25 cents at $5.8100. August live cattle closed up $0.83 at $185.10. August crude oil is down $0.25 per barrel at $83.13. The Dow Jones Industrial Average is up 162 points at 39,332 with the NASDAQ up 149 points at 18,029
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