GENERAL OVERVIEW:
Milk futures closed higher with numerous contracts limit up. The strength in the butter price was a surprise and fueled the buying interest in Class IV futures.
MILK:
Class III milk futures bounced slightly after making new contract lows earlier in the week. Class IV futures posted strong gains during the second half of the week, fueled by the increase in the butter price. This does not mean that this is a change in trend. Higher spot prices will likely increase selling interest to take advantage of the higher prices. Spot milk supplies are readily available, but demand from plants that have manufacturing capacity has provided support for prices, with some spot milk purchased at a premium to class.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.08 |
| 6 Month: | $16.64 |
| 9 Month: | $16.93 |
| 12 Month: | $17.00 |
CHEESE:
For the week, blocks declined 3.00 cents with 48 loads traded. The weekly average price is $1.4210. Barrels increased 2.00 cents with 2 loads traded. The weekly average price is $1.4710. Dry whey increased 0.50 cent with 3 loads traded. The weekly average price is $68.10. This did not provide traders with much to hang their hats on for market direction.
BUTTER:
For the week, butter increased 9.50 cents with 68 loads traded. The weekly average price is $1.5470. Grade A nonfat dry milk decreased 4.25 cents with 36 loads traded. The weekly average price is $1.5935. The butter price increased by 12.50 cents during the second half of the week, providing some hope that the low has been reached and greater buying interest may be surfacing as we move toward the second half of the year.
OUTSIDE MARKETS SUMMARY:
July corn closed down 2.00 cents per bushel at $4.1275, November soybeans closed down 0.75 cent at $11.5625, and July soybean meal closed down $1.20 per ton at $307.00. September Chicago wheat closed down 11.75 cents at $5.8975. August live cattle closed down $1.40 at $245.83. August crude oil is down $1.89 per barrel at $70.03. The Dow Jones Industrial Average is down 45 points at 51,876, with the NASDAQ down 61 points at 25,298.
