GENERAL OVERVIEW:
Class III futures held in a sideways pattern during the week, while Class IV futures declined. The trading volume in spot butter was less than the previous week, but there was good volume in nonfat dry milk.
MILK:
There is not much to be said about the activity of the week, with spot prices reflecting the fundamentals. Class III futures moved in a sideways pattern as the block cheese price moved in a range. Dry whey showed weakness as demand remains strong, but supply is sufficient. Demand for dairy is good overall as higher production of dairy products in April had been absorbed, keeping inventory below a year ago. Class IV futures were under pressure all week due to the weakness of nonfat dry milk and the potential for further weakness during the summer. Milk production remains above a year ago and is expected to remain that way. A significant bullish shift is not expected that would result in traders taking a long-term position in the futures market.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.71 |
| 6 Month: | $17.43 |
| 9 Month: | $17.53 |
| 12 Month: | $17.52 |
CHEESE:
For the week, blocks slipped 0.25 cent with 39 loads traded. The weekly average price is $1.4740. Barrels remained unchanged with 3 loads traded. The weekly average price is $1.44. Dry whey declined 3.00 cents with 7 loads traded. The weekly average price is 67.75 cents. The dry whey price has declined to the lowest level since March 24th.
BUTTER:
For the week, butter increased 2.50 cents with 72 loads traded. This was fewer than in the past two weeks, but still a substantial amount. The weekly average price is $1.6925. Grade A nonfat dry milk declined 4.50 cents with 27 loads traded. The weekly average price is $2.1160.
OUTSIDE MARKETS SUMMARY:
July corn closed down 7.00 cents per bushel at $4.1750, July soybeans closed down 8.00 cents at $11.2150, and July soybean meal closed down $5.20 per ton at $308.50. July Chicago wheat closed down 1.75 cents at $5.8000. August live cattle closed up $0.13 at $241.65. July crude oil is down $2.84 per barrel at $90.20. The Dow Jones Industrial Average is down 695 points at 50,867, with the NASDAQ down 1,122 points at 25,709.
