GENERAL OVERVIEW:
Class III futures were mixed with Class IV futures lower. The butter price has increased for seven consecutive days. June futures contracts are now the lead month. The Global Dairy Trade auction was down 0.6 percent.
MILK:
Class III milk futures did not do much today, closing mixed as cheese prices remained steady while dry whey declined. Class IV futures closed lower as contracts already had the increases in spot butter and nonfat dry milk prices factored in. The Global Dairy Trade auction took place today, with the trade-weighted average declining 0.6 percent. There were 14,364 metric tons of products sold at an average price of $4,021 per metric ton. Anhydrous milk fat increased 5.3 percent to $6,668 per metric ton or $3.02 per pound. Butter increased 1.2 percent to $5,734 per metric ton or $2.60 per pound. Buttermilk powder increased 3.0 percent to $3,578 per metric ton or $1.62 per pound. Cheddar cheese increased 1.8 percent to $4,621 per metric ton or $2.10 per pound. Lactose increased 4.6 percent to $1,608 per metric ton or $0.73 per pound. Skim milk powder decreased 3.0 percent to $3,457 per metric ton or $1.57 per pound. Whole milk powder decreased 2.2 percent to $3,706 per metric ton or $1.68 per pound. Mozzarella decreased 4.6 percent to $3,942 per metric ton or $1.79 per pound.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.75 |
| 6 Month: | $17.47 |
| 9 Month: | $17.55 |
| 12 Month: | $17.53 |
CHEESE:
The buyers and sellers of cheese seem to be comfortable with the current price levels. Spot trading activity in blocks has increased significantly this week. The positive aspect is that it has not pressured the price. Buyers are willing to purchase and have not stepped away from the market. It is unclear whether this could be a change in attitude resulting in a change in trend.
BUTTER:
It seems as if butter has broken the pattern of gains for a few days, followed by greater weakness. The spot price has increased for 6 consecutive days with a gain of 19 cents. The price has increased to the highest level since April 21st. Buyers are buying to meet increased demand and to increase ownership for later demand.
OUTSIDE MARKETS SUMMARY:
July corn closed down 3.50 cents per bushel at $4.4050, July soybeans closed down 15.50 cents at $11.6525, and July soybean meal closed down $.30 per ton at $326.20. July Chicago wheat closed down 5.75 cents at $6.0300. August live cattle closed down $0.95 at $239.65. July crude oil is up 1.25 per barrel at $93.41. The Dow Jones Industrial Average is up 229 points at 51,308, with the NASDAQ up 7 points at 27,094.
