MILK:
Class III milk futures posted strong increases, with the June contract showing the greatest gain. The June through October contracts are solidly above $19.00, improving the outlook for milk prices. The June contract moved within 2 cents of the high set back on October 8, 2024. The July contract moved within 9 cents of the high. The block cheese price on October 8, 2024, was $1.9275 and 3 cents higher than today. The barrel cheese price was $1.88 and 6 cents higher than today. Milk production in the Western region of the country has reached its peak and is slowly decreasing. Milk supplies remain sufficient for demand, with spot milk prices in the region on both sides of steady with class. The demand for bottled milk is steady.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.12 |
| 6 Month: | $19.19 |
| 9 Month: | $18.97 |
| 12 Month: | $18.75 |
CHEESE:
Cheese prices showed surprising strength over the past two days. The strength may bring increased buying interest into the market as end users who had been holding back may step up to purchase before prices increase further. The unfilled bids remaining today indicate prices could move higher on Friday.
BUTTER:
The butter market is not following the same path as the cheese market. Cream supplies are abundant, churning is active, and inventory is higher than a year ago. Buyers have been able to purchase supplies regularly on the daily spot market without having to chase the market higher.
OUTSIDE MARKETS SUMMARY:
July corn closed up 3.00 cents per bushel at $4.4850, July soybeans closed down 26.50 cents at $10.5125 and July soybean meal closed up $4.50 per ton at $296.40. July Chicago wheat closed up 8.00 cents at $5.3275. June live cattle closed down $2.78 at $211.18. June crude oil is down $1.53 per barrel at $61.62. The Dow Jones Industrial Average is up 272 points at 42,323, with the NASDAQ down 34 points at 19,112.
