OVERVIEW:
Traders were not interested in buying into the gains in cheese prices, maintaining an overall bearish attitude in the market. Dairy exports in May declined by 2.0%, attributed to ongoing trade tensions with China. The value of dairy exports increased 13%, totaling $803 million.
MILK:
After a brief increase in Class III futures, nearby contracts have nearly fallen back to their lows. The August contract fell below $18 again. The July contract lost more ground compared to where the June price was announced. The decline in the spot butter price was offset by the increase in the nonfat dry milk price. Class IV futures are mostly unchanged. Dairy exports in May declined by 2.0%, attributed to ongoing trade tensions with China and the impact it had on whey exports, as that country is the largest importer of whey. The value of dairy exports increased 13%, totaling $803 million. The year-to-date value of exports was up 13% compared to the same period in 2024. Year-to-date exports on a total milk solids basis are 2.0% lower than a year ago.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.91 |
| 6 Month: | $18.35 |
| 9 Month: | $18.25 |
| 12 Month: | $18.21 |
CHEESE:
Cheese exports set a record at 51,550 metric tons (mt), up 7.1% from May 2024. This is the highest monthly volume of cheese ever exported. Year-to-date exports are up 7.1%. Lactose exports totaled 31,605 mt, down 7.7% from a year ago, with year-to-date exports down 3.9%. Whey exports fell 23.0% to a total of 35,541 mt, with year-to-date exports down 8.1%. China is the largest buyer of whey, and trade tensions have resulted in them reducing their purchases. Whey protein concentrate exports totaled 7,283 mt, down 4.8%, with year-to-date exports up 8.6%.
BUTTER:
Butterfat soared in May, totaling 7,486 mt up 151.2% over May 2024. Year-to-date exports are 174.7% above the same period a year ago. Nonfat dry milk/skim milk powder exports increased 1.7% to 61,953 mt, with year-to-date exports down 13.5%. Whole milk powder increased 107.6%, totaling 5,804 mt, with year-to-date exports up 30.0% from the same period a year ago.
OUTSIDE MARKETS SUMMARY:
December corn closed down 6.50 cents per bushel at $4.1425, November soybeans closed down 3.25 cents at $10.1750 and December soybean meal closed down $1.60 per ton at $284.30. September Chicago wheat closed down 0.75 cent at $5.4775. August live cattle closed up $4.08 at $219.98. August crude oil is up $0.24 per barrel at $68.17. The Dow Jones Industrial Average is down 166 points at 44,241, with the NASDAQ up 6 points at 20,418.
