MILK:
It was a holiday-shortened week, but it was not kind to milk futures. The underlying cash prices eroded substantially, taking milk futures down with them. The July Class III contract is down to the lowest level since April 28. Class III futures closed mixed for the week despite the decline of butter and nonfat dry milk. The USDA released the May Milk Production report, showing milk production in the top 24 states up 1.7% from May 2024. Milk output per cow was 7 pounds higher, averaging 2,125 pounds. The number of cows on farms totaled 9.00 million head, 118,000 more than May 2024 and 6,000 head more than April. Milk production in the country increased by 1.6%, with production per cow up 7 pounds to 2,110. The total number of cows in the country was 9.45 million head, 5,000 head more than in April and 114,000 more than in May 2024. Cow numbers for April were revised to 9.44 million head, 15,000 head more than what was reported in April. The revision showed the increase in April was 20,000 head compared to March. This will limit the upside price potential for milk as buyers see no reason to become concerned over the milk supply.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.13 |
| 6 Month: | $18.37 |
| 9 Month: | $18.32 |
| 12 Month: | $18.26 |
CHEESE:
For the week, blocks fell 17.25 cents with 36 loads traded. The weekly average price was $1.7225. Barrels fell 17.75 cents with 6 loads traded. The weekly average price was $1.7269. Dry whey gained 1.75 cents with 10 loads traded. The weekly average price was 55.44 cents. The block price has declined to the lowest level since April 4. Barrels are at the lowest price since March 31.
BUTTER:
For the week, butter declined 7.00 cents with 31 loads traded. The weekly average price was $2.5494. Grade A nonfat dry milk declined 0.75 cent with seven loads traded. The weekly average price was $1.2688. The bearish milk production report may keep some pressure on the butter market as buyers will be less concerned over a tighter milk supply and lower component values.
Outside Markets Summary:
July corn closed down 4.75 cents per bushel at $4.2875, July soybeans closed down 6.75 cents at $10.6800 and July soybean meal closed down $.80 per ton at $284.10. July Chicago wheat closed down 6.50 cents at $5.6775. August live cattle closed down $1.85 at $209.83. August crude oil is up $0.45 per barrel at $73.95. The Dow Jones Industrial Average is up 35 points at 42,207, with the NASDAQ down 99 points at 19,447.
