OVERVIEW:
Milk futures were under pressure today. Class III was lower due to steady cheese prices. Class IV was lower due to the decline in butter price. Dairy exports in June increased 15.0% compared to a year ago. Cheese and butterfat exports led the way.
MILK:
It is interesting to note how traders have become increasingly nervous since cheese prices have increased as much as they have. Steady spot cheese prices triggered selling as it could mean a price threshold has been reached. Traders liquidated long positions to take some profits in case the underlying cash falls back. Dairy Market News reports that milk availability in the Eastern region is termed as "tight" due to the hot weather that has impacted milk production. Bottling demand has increased in preparation for schools reopening. Spot loads of milk are available, ranging from $3.00 below to $2.00 above class. Dairy exports increased 15% on a milk solids equivalent basis in June. The export value for the first half of the year reached $4.724 billion.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.06 |
| 6 Month: | $18.18 |
| 9 Month: | $18.07 |
| 12 Month: | $18.03 |
CHEESE:
June cheese exports jumped 34.4% over June 2024, totaling 52,191 metric tons. Year-to-date exports are 11.1% above a year ago and on the way to a record-breaking year. Lactose exports increased 14.1%, totaling 44,066 metric tons, with year-to-date exports 0.6% below a year ago. Whey exports gained 15.1% compared to June 2024, totaling 49,760 metric tons. Year-to-date exports are down 4.3% compared to a year ago. Whey protein concentrate exports totaled 8,283 metric tons, up 15.3% from a year ago, with year-to-date exports up 9.8%.
BUTTER:
Butterfat exports jumped 77.0% in June compared to June 2024, totaling 8,769 metric tons. Year-to-date exports are 149.9% above the same period last year. Nonfat dry milk/skim milk powder exports declined 1.7%, totaling 59,450 metric tons, with year-to-date exports 11.6% below a year ago. Whole milk powder exports jumped 107.0% above a year ago, reaching 5,873 metric tons, with year-to-date exports up 46.6%.
OUTSIDE MARKETS SUMMARY:
December corn closed up 2.75 cents per bushel at $3.9725, November soybeans closed up 11.50 cents at $10.4425 and December soybean meal closed up $5.40 per ton at $297.30. September Chicago wheat closed up 2.25 cents at $5.0725. October live cattle closed up $0.40 at $229.43. September crude oil is down $0.45 per barrel at $62.72. The Dow Jones Industrial Average is up 464 points at 44,922, with the NASDAQ up 31 points at 21,713.
