MILK:
The June Class III contract closed at $18.75 while the Class IV contract closed at $18.37. These are the levels the trade thinks will be the announced prices. July futures are now the lead month. It was an interesting day as further gains in spot prices were not met with further buying interest in Class III futures. Contracts suffered double-digit losses through January. It did not seem as if futures moved too high over the past two days relative to the increase in cheese prices, but traders remain cautious and would rather be safe than sorry, and took some profit out of the market. The average soybean meal price for May was released today at $288.75 per ton, down $6.28 from April and down $99.90 per ton from May 2024. The income over feed price for May is $10.40. The USDA will announce the Federal Order class prices for June. This will be the first month in which the barrel price will not be reflected.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.30 |
| 6 Month: | $18.52 |
| 9 Month: | $18.33 |
| 12 Month: | $18.27 |
CHEESE:
Cheese production is steady, and the supply is sufficient for demand. Buyers generally become more aggressive during this time of year as they look ahead to the upcoming demand. The lower prices may spur greater buying interest even though the supply of cheese is sufficient. Traders are cautious over whether demand will increase sufficiently to keep inventory below the previous year.
BUTTER:
The butter price has held its recent gains and may be poised to trend higher. Cream supply is sufficient for churning, but the volume available is slowing. Cream remains available on the spot market, but prices are increasing. The butterfat levels in milk remain above a year ago but are being impacted by hotter temperatures. Retail demand for butter is steady, but it is expected to increase as the summer progresses.
Outside Markets Summary:
September corn closed down 3.25 cents per bushel at $4.0600, November soybeans closed up .25 cent at $10.2725 and December soybean meal closed down $1.70 per ton at $287.60. September Chicago wheat closed up 10.75 cents at $5.4900. August live cattle closed down $3.13 at $210.75. August crude oil is up $0.59 per barrel at $65.70. The Dow Jones Industrial Average is up 400 points at 44,495, with the NASDAQ down 167 points at 20,203.
