MILK:
Class III milk futures suffered greater losses than Class IV, but not by very much. With cheese prices remaining steady and butter showing weakness, it should have put more pressure on Class III contracts. Milk production is higher than a year ago, and more milk is moving to manufacturing, but it is not overwhelming the market. Demand shows signs of improvement, which could limit downside price weakness. The prices today are concerning as traders are quick to sell the market with disappointing cash activity. Nearby July Class III futures made a new low, moving to the lowest price since May 5. The August contract fell 32 cents, remaining barely above $19.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.78 |
| 6 Month: | $18.99 |
| 9 Month: | $18.85 |
| 12 Month: | $18.69 |
CHEESE:
Buyers and sellers were comfortable with the current prices with no urgency to buy or sell. The buyers are trying to limit purchases to current demand or expected demand in the near term. They want to limit buying for the long term to avoid having to pay more for storage.
BUTTER:
The butter price declined, but there are willing buyers. There were 30 loads traded today, with quite a few unfilled bids remaining at the close, indicating buyers are willing to pick up what is being offered if the sellers reduced prices. Even though butter buying has been active numerous times this year and butter was put into storage, buyers want to hedge against the potential for higher prices by increasing ownership.
OUTSIDE MARKETS SUMMARY:
July corn closed up 5.25 cents per bushel at $4.3875/bu, July soybeans closed up 1.75 cents at $10.5775 and July soybean meal was up $0.40 per ton at $295.90. July Chicago wheat was down 7.50 cents at $5.3450. August live cattle closed down $1.05 at $218.20. July crude oil is down $0.31 per barrel at $64.98. The Dow Jones Industrial Average is up 105 points at 42,867 points, with the NASDAQ up 124 points at 19,715.
