MILK:
Class III futures were higher for the week, but the gains were trimmed today as cheese prices fell. Traders were pulled into the market as cheese prices increased and were caught on the wrong side at the end of the week. Class IV futures showed greater gains, with most of those taking place today in response to the increase in butter and nonfat dry milk prices. The decline in cheese prices may not indicate that a top is in, but increased milk production and schools closing will move more milk to manufacturing, possibly limiting the upside potential for the time being. The markets will be closed on Monday and will open at the regular time on Monday evening.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.23 |
| 6 Month: | $19.29 |
| 9 Month: | $19.08 |
| 12 Month: | $18.83 |
CHEESE:
For the week, the block cheese price declined 6 cents with 32 loads traded. The weekly average price was $1.91. The barrel cheese price declined 2.75 cents with 13 loads traded. The weekly average price was $1.8550. Dry whey slipped 0.75 cent with seven loads traded. The weekly average price was 53.70 cents. The April Cold Storage report showed an increase in American cheese stocks of 10.3 million pounds, totaling 805.9 million pounds from March and 2% below a year ago. Swiss cheese decreased by 690,000 pounds, totaling 23.1 million pounds, and is 5% above a year ago. Other cheese stocks totaled 579.1 million pounds, up 753,000 pounds, but 3% below last year. Total cheese inventory reached 1.408 billion pounds, up 10.4 million pounds from March and 2% below April 2024.
BUTTER:
For the week, butter increased 1.25 cents with 16 loads traded. The weekly average price was $2.3420. Grade A nonfat dry milk increased 1.75 cents with 35 loads traded. The weekly average price was $1.2170. Butter inventory in April increased by 14.1 million pounds, totaling 337.4 million pounds. This is 7% below a year ago. This puts butter in a bullish posture as inventory falling below a year ago tightens supply more than anticipated. The price may slowly trend higher as increased demand may reduce inventory significantly.
OUTSIDE MARKETS SUMMARY:
July corn closed down 3.50 cents per bushel at $4.5950, July soybeans closed down 7.25 cents at $10.6025 and July soybean meal closed down $2.30 per ton at $296.20. July Chicago wheat closed down 2.00 cents at $5.4250. August live cattle closed down $0.05 at $210.45. July crude oil is up $0.33 per barrel at $61.53. The Dow Jones Industrial Average is down 256 points at 41,603, with the NASDAQ down 189 points at 18,737.
