OVERVIEW:
Milk futures closed the week with little fanfare. Cheese prices showed minor gains, leaving traders guessing market direction next week. Nonfat dry milk was the only category posting a weekly gain in the spot markets. Ice cream manufacturers will phase out artificial food dyes over the next three years.
MILK:
Class III futures were steady to lower for the week, but contracts fell initially and then regained much of the losses. This leaves the market without solid direction. Traders may receive some direction next week with the release of the June Milk Production and Cold Storage reports. Milk remains sufficient for bottling and manufacturing, which suppresses any concerns that may have developed over the potential of a tightening supply. Ice cream manufacturers have pledged to phase out artificial food dyes by 2028. This move has been the result of the health secretary, Robert Kennedy Jr., looking to implement policies to phase out synthetic dyes from the nation's food supply. Forty ice cream manufacturers representing 90 percent of the product sold in the U.S. are being proactive with this initiative. The FDA indicates food dyes are safe, but ice cream manufacturers are taking steps to phase out these dyes to avoid disruption to sales.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.82 |
| 6 Month: | $18.17 |
| 9 Month: | $18.10 |
| 12 Month: | $18.08 |
CHEESE:
For the week, blocks decreased by 1.75 cents with 36 loads traded. The weekly average price is $1.6355. Barrels decreased by 1.50 cents with one load traded. The weekly average price is $1.6660. Dry whey decreased by a penny with five loads traded. The weekly average price is 56.85 cents.
BUTTER:
For the week, butter decreased by 7.75 cents with seven loads traded. The weekly average price is $2.5385. Dry whey decreased by a penny with five loads traded. The butter price moved to the lowest level since June 20, eliminating the uptrend that has been developing.
OUTSIDE MARKETS SUMMARY:
December corn closed up 6.75 cents per bushel at $4.2775, November soybeans closed up 9.25 cents at $10.3575 and December soybean meal closed up $5.30 per ton at $288.80. September Chicago wheat closed up 12.75 cents at $5.4625. August live cattle closed down $0.13 at $223.55. August crude oil is down $0.20 per barrel at $67.34. The Dow Jones Industrial Average is down 142 points at 44,342, with the NASDAQ up 10 points at 20,896.
