MILK:
The June Federal Order class prices were announced today. The Class II price was $18.43, down $0.29 from May and down $3.17 from June 2024. The Class III price was $18.82, up $0.25 from May and down $1.05 from June 2024. The Class IV price was $18.30, up $0.17 from May and down $2.78 from June 2024. Milk production has been holding surprisingly well, with output higher than expected in many areas. Dairy farms have advanced significantly in their ability to keep cows cool during hot weather. Many areas have been receiving good rain. The drought monitor map showed that the drought areas are substantially less than they had been a few months ago. This has improved the crop conditions and increased the potential for a substantial crop, which may keep feed plentiful and prices low. The USDA will release the May Dairy Products report on Thursday, which will show the volume of dairy products produced for the month.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.15 |
| 6 Month: | $18.49 |
| 9 Month: | $18.32 |
| 12 Month: | $18.25 |
CHEESE:
Spot milk in the Central region is running as low as $8.00 under class to $1.00 under. Some plants are looking to reduce their milk supply over the holiday weekend and have offered milk on the spot market. Other plants are looking for more milk to keep plants full to meet their contractual obligations. Cheese demand is good, but not enough to tighten the market at the present time.
BUTTER:
The decline in the butter price today was unexpected, as buyers seemed to have increased their buying interest. However, this may limit the downside, but that may not be without price fluctuations. The Dairy Products report should show butter output in May above that of a year ago due to continued abundant cream supplies.
Outside Markets Summary:
September corn closed up 12.00 cents per bushel at $4.1800, November soybeans closed up 20.75 cents at $10.4800 and December soybean meal closed up $3.20 per ton at $290.80. September Chicago wheat closed up 15.00 cents at $5.6400. August live cattle closed up $1.70 at $212.45. August crude oil is up $2.05 per barrel at $67.50. The Dow Jones Industrial Average is down 11 points at 33.484 with the NASDAQ up 190 points at 20,393.
