MILK:
Class III milk futures closed lower in most contracts, with the July and August contracts showing the greatest losses on moderate trading activity. Class IV futures closed higher, further widening the spread between Class III and Class IV contracts. Packaged fluid milk sales in April declined 1.8% compared to the previous year. This has been a trend for quite some time. Fortunately, demand has increased for cheese, yogurt, and other dairy products, keeping overall demand growing. Whole milk sales increased 1.3%; flavored whole milk increased 12.7%; reduced fat milk sales declined 4.4%; lower fat milk declined 8.6%; fat-free skim milk declined 5.6%; flavored reduced fat declined 10.7%, buttermilk sales increased 0.3%, with other fluid milk sales increasing 19.7%. Organic whole milk increased 7.7%; organic flavored whole milk fell 43.0%; organic reduced fat milk increased 3.9%; organic low-fat milk declined 21.0%; organic fat-free declined 13.2%; organic flavored fat-reduced milk fell 63.2%, with other organic fluid milk product sales up 76.9%.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.43 |
| 6 Month: | $18.72 |
| 9 Month: | $18.63 |
| 12 Month: | $18.52 |
CHEESE:
Block cheese moved to the lowest level it has been since May 13, while barrels are at the lowest level since May 14. The weakness has not been kind to milk futures. Prices were much lower in March than they are currently. There may be significant downside potential, but lower prices should increase buyer interest. The hope is that it materializes soon.
BUTTER:
The butter price has moved in the opposite direction to the highest price it has been since January 13. After substantial volume has been traded on the spot market over the past two weeks, it was a surprise to see only one load traded today. After the one load was traded, there were no unfilled bids or uncovered offers remaining. It is difficult to determine whether buying interest has been satisfied for the time being or whether sellers have moved all they need to move for now.
Outside Markets Summary:
July corn closed down 9.75 cents per bushel at $4.3475, July soybeans closed steady at $10.6975 and July soybean meal closed down $8.20 per ton at $283.70. July Chicago wheat closed down 7.25 cents at $5.3650. August live cattle closed up $3.10 at $215.55. July crude oil is down $1.50 per barrel at $71.48. The Dow Jones Industrial Average is up 317 points at 42,515, with the NASDAQ up 294 points at 19,701.
