MILK:
Class III futures moved in the opposite direction from what the underlying spot cheese prices would have indicated. Some of the influences that provided strength were the bullish implications of the Dairy Products report. The higher production of dairy products was unable to move inventory above a year ago, indicating good demand. This triggered aggressive buying interest from traders who sold positions at the beginning of the week, wanting to preserve some of their profits ahead of the weekend. This triggered increased buying interest with some of the profits that had been realized fizzling before some positions were offset. Trading activity was moderate with most of the activity confined to the July contract.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.03 |
| 6 Month: | $19.15 |
| 9 Month: | $18.97 |
| 12 Month: | $18.79 |
CHEESE:
For the week, blocks fell 9 cents with 34 loads traded. The weekly average price was $1.9215. Barrels declined a penny with seven loads traded. The weekly average price was $1.8545. Dry whey gained 0.75 cent with 12 loads traded. The weekly average price was 56.75 cents. Barrels closed above blocks for the first time since May 6.
BUTTER:
For the week, butter jumped 8 cents with 102 loads traded. The weekly average price was $2.5365. Sellers were actively looking to move supplies to keep plant inventories from increasing more than desired. Buyers were willing to purchase what was offered without holding back. Grade A nonfat dry milk declined 2.50 cents for the week, with 13 loads traded. The weekly average price was $1.2725.
OUTSIDE MARKETS SUMMARY:
July corn closed up 3.00 cents per bushel at $4.4250, July soybeans closed up 5.50 cents at $10.5725 and July soybean meal closed down $1.40 per ton at $295.70. July Chicago wheat closed up 9.25 cents at $5.5475. August live cattle closed up $2.05 at $218.88. July crude oil is up $1.40 per barrel at $64.77. The Dow Jones Industrial Average is up 443 points at 42,763 with the NASDAQ up 232 points at 19,530.
