GENERAL OVERVIEW:
Milk futures closed mixed. The increase in cheese prices resulted in the nearby months closing with double-digit gains except for July. The rest of Class III and IV futures were mixed. Trade volume was large in the August and September contracts. Fluid milk sales in May were 2.1% below a year ago.
MILK:
Class III milk futures posted a strong week in the nearby contract with September, October, and November contracts closing above $18.00, where they had not been since May 21st. Strength in cheese prices supported the gains. Futures may have limited upside from here unless buyers continue to purchase cheese aggressively next week. Class IV futures struggled, unable to find support from butter and nonfat dry milk. Milk sales in May were 2.1% below a year ago. Whole milk sales increased 0.1%; flavored whole milk increased 11.0%; reduced fat milk decreased 5.4%; low fat milk decreased 9.7%; fat-free skim milk decreased 11.3%; flavored fat-reduced milk decreased 8.2%; buttermilk declined 2.0%, and other fluid milk product sales increased 24.1%. Organic whole milk sales increased 2.0%; organic flavored whole milk increased 1.9%; organic reduced fat milk decreased 2.0%; organic low-fat milk decreased 8.0%; organic fat-free milk decreased 13.4%; organic flavored fat-reduced milk decreased 16.1%; and other organic fluid milk product sales decreased 100.0%.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.20 |
| 6 Month: | $17.59 |
| 9 Month: | $17.55 |
| 12 Month: | $17.54 |
CHEESE:
For the week, block increased 8.00 cents with 27 loads traded. The weekly average price is $1.6055 compared to $1.5150 last week. Barrels increased 5.25 cents with 7 loads traded. The weekly average price is $1.5950 compared to $1.5270 last week. Dry whey increased 0.50 cent with 3 loads traded. The weekly average price is 69.40 cents compared to 67.90 cents last week. The block price moved to the highest level since May 13th. Barrels moved to the highest level since May 6th.
BUTTER:
For the week, butter decreased 6.00 cents with 57 loads traded. The weekly average price is $1.6085 compared to $1.6500 last week. Grade A nonfat dry milk decreased 8.50 cents with 37 loads traded. The weekly average price is $1.5045 compared to $1.5160 last week.
OUTSIDE MARKETS SUMMARY:
December corn closed up 3.50 cents per bushel at $4.6750, November soybeans closed up 8.00 cents at $12.0300, and December soybean meal closed down $3.90 per ton at $318.50. September Chicago wheat closed up 8.00 cents at $6.8275. August live cattle closed down $2.65 at $224.43. August crude oil is up $3.54 per barrel at $82.49. The Dow Jones Industrial Average is down 407 points at 52,146, with the NASDAQ down 362 points at 25,520.
