MILK:
Milk futures have been struggling as traders are uncertain over the upside price potential in the near term. Milk production has passed the peak of spring flush but is holding well in most areas. Some plants are not running at capacity but are not short of milk by any means. Most plants indicate production is adequate for demand. Milk supply is expected to decrease as the weather turns hotter, but the level of decline is difficult to determine due to greater efficiency in cooling cows. Milk components are holding well and remain above a year ago. Spot milk prices range from $5.00 under class to $1.00 over class.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.85 |
| 6 Month: | $18.93 |
| 9 Month: | $18.78 |
| 12 Month: | $18.67 |
CHEESE:
The April Dairy Products report showed American cheese output at 492 million pounds, up 6.1% from April 2024. Italian-type cheese production totaled 517 million pounds, up 2.2% from a year ago. Total cheese output reached 1.23 billion pounds, up 3.1% above April 2024. Strong cheese output did not overwhelm the market. The inventory of cheese increased in April but remained below a year ago. This indicates demand has been strong as higher production has not been able to build inventory very much. Dry whey production totaled 68.9 million pounds, down 14.9% from a year earlier. Lactose output reached 95.4 million pounds, up 4.0%. Whey protein concentrate totaled 42.2 million pounds, up 6.5%.
BUTTER:
Butter production in April totaled 216 million pounds, up 3.9% from a year earlier. Even with the strong production inventory fell 7% below a year ago. Heavy cream supply and active churning have not had a negative impact on the market. Nonfat dry milk production totaled 163 million pounds, down 6.1%. Skim milk powder declined 20.8% to 35.5 million pounds.
OUTSIDE MARKETS SUMMARY:
July corn closed up .75 cent per bushel at $4.3950, July soybeans closed up 6.75 cents at $10.5175 and July soybean meal closed steady at $297.10. July Chicago wheat closed up 2.25 cents at $5.4550. August live cattle closed up $4.48 at $216.83. July crude oil is up $0.40 per barrel at $63.25. The Dow Jones Industrial Average is down 108 points at 42,320 with the NASDAQ down 162 points at 19,298.
