MILK:
It was another dismal day for Class III futures as the weakness of blocks resulted in some contracts posting double-digit losses. Not only did the weakness of blocks put pressure on the market, but also the bearish implications of the May Milk Production report released on Friday. Milk output being 1.6% higher than the previous year for two consecutive months, and continued growth in cow numbers, keeps a bearish attitude in the market. There were only seven of the top 24 states that showed declines from May 2024. The largest decline was in Illinois with a decrease of 4.0%. Washington declined 3.3%; Oregon was down 2.3%; California was down 1.8%; Arizona declined 0.5%; Minnesota was down 0.4%, and Wisconsin was down 0.1%. Kansas showed the largest increase at 15.7%, followed by South Dakota with a gain of 9.5%. Texas gained 8.5%; Georgia was 7.9% higher, with Idaho up 6.0%. All the other states gained less than 4.0%.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.95 |
| 6 Month: | $18.21 |
| 9 Month: | $18.18 |
| 12 Month: | $18.14 |
CHEESE:
The steady barrel price does not indicate that the price has found a bottom. It is just that no one needed to accomplish business today. One would hope that prices would be low enough to increase the interest of buyers to purchase supplies for later demand. However, strong cheese production and a plentiful milk supply may keep buyers purchasing on an as-needed basis.
BUTTER:
The increase in the butter price today could give the impression that the price has moved low enough to spur buying interest. Retain demand is steady to higher while food service demand is lower than a year ago. Cream supplies are sufficient, keeping most churns running on full schedules. However, the volume of cream is beginning to show a slight decrease.
Outside Markets Summary:
July corn closed down 9.50 cents per bushel at $4.1925, July soybeans closed down 9.25 cents at $10.5875 and July soybean meal closed down $1.70 per ton at $282.40. September Chicago wheat closed down 14.00 cents at $5.6950. August live cattle closed down $0.45 at $209.38. August crude oil is down $6.58 per barrel at $67.26. The Dow Jones Industrial Average is up 375 points at 42,582, with the NASDAQ up 184 points at 19,631.
