OVERVIEW:
Class III futures tried to post better prices to close the day and the week, but traders' attitudes remain bearish. The income over feed price for June was $11.10, and the highest price since March.
MILK:
Nearby Class III futures showed little change for the week, while deferred contracts closed lower. Even though spot cheese prices showed gains for the week, traders remain bearish and were unwilling to provide much support to the market. Based on the movement of underlying cash, milk futures should have rebounded significantly. However, higher cash prices may increase seller interest. Lower feed prices and a significant supply of grain at harvest and next year should keep milk production strong. Cow numbers are expected to remain at higher levels as high replacement prices will keep culling rates lower. I made an error in reporting the premium/supreme hay prices in my closing comments on Thursday. I reported the average prices of a state rather than the overall average price. The average price was $244.00 per ton in June, down $33.00 from May and down $12.00 per ton from June 2024. The average soybean meal price for June was $280.70 per ton, down $8.05 per ton from May and down $103.40 per ton from June 2024.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.69 |
| 6 Month: | $17.85 |
| 9 Month: | $17.82 |
| 12 Month: | $17.84 |
CHEESE:
For the week, blocks increased by 6.50 cents with 38 loads traded. The weekly average price was $1.6790. Barrels increased by 8.50 cents with five loads traded. The weekly average price was $1.6660. Dry whey price by one cent with 10 loads traded. The weekly average price was 53.90 cents.
BUTTER:
For the week, butter decreased 2.00 cents with 11 loads traded. The weekly average price was $2.4785. Grade A nonfat dry milk remained unchanged, with 13 loads traded. The weekly average price was $1,2890. The butter price continues to struggle as overall demand is steady to lower.
OUTSIDE MARKETS SUMMARY:
December corn closed down 3.00 cents per bushel at $4.1075, November soybeans closed steady at $9.8925 and December soybean meal closed up $4.50 per ton at $280.50. September Chicago wheat closed down 6.50 cents at $5.1675. October live cattle closed up $0.53 at $223.68. September crude oil is down $1.93 per barrel at $67.33. The Dow Jones Industrial Average is down 542 points at 43,589, with the NASDAQ down 472 points at 20,650.
