MILK:
Fundamentals have changed little over the past few weeks. The spring flush is finished, but milk production remains strong in most areas. Component levels are variable, with some areas indicating component levels remain strong while others report a slight decrease in component values. Spot milk prices in the Central regions have strengthened with the low range of $5.00 under class rather than the $7.00 under class reported last week. This is interesting as schools have closed for the summer, leaving more milk available for manufacturing. However, Class II production is increasing in preparation for summer demand. The May Federal Order class prices were released today. The Class II price was $18.72, down $0.50 from the previous month and down $2.78 from May 2024. The Class III price was $18.57, up $1.09 from April and up $0.02 from a year ago. The Class IV price was $18.13, up $0.21 from the previous month, but down $2.37 from May 2024. The Senate Committee on Agriculture, Nutrition, and Forestry supported by vote the Whole Milk for Healthy Kids Act. If signed into law, it would provide schools with the option of serving whole and 2% milk rather than only 1% and fat-free milk, which is currently served as the only choices. Whole and 2% milk are the most consumed varieties at home and preferred by most children. The bill needs final action by the House and Senate before it can be implemented.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.95 |
| 6 Month: | $19.01 |
| 9 Month: | $18.85 |
| 12 Month: | $18.71 |
CHEESE:
Retail cheese demand varies from steady or stronger depending on the area and region. Cheese is readily available as production is steadily increasing now that more milk is moving to manufacturing. Yet, buyers have been active in the spot market as the recent price strength has increased buyer interest in purchasing to avoid further price increases.
BUTTER:
The butter price moved to the highest level since January 15. There have been 55 loads traded so far this week. Buyers have stepped up to the plate to cover their needs and to increase ownership for later in the year.
OUTSIDE MARKETS SUMMARY:
July corn closed up .25 cent per bushel at $4.3875, July soybeans closed up 4.25 cents at $10.4500 and July soybean meal closed up $2.60 per ton at $297.10. July Chicago wheat closed up 7.25 cents at $5.4325. August live cattle closed up $2.60 at $212.35. July crude oil is down $.56 per barrel at $62.85. The Dow Jones Industrial Average is down 92 points at 42,428, with the NASDAQ up 62 points at 19,460.
