Milk Markets Have a Strange Day

Coming off the mid-week break in honor of Juneteenth, dairy markets were looking for some direction. It was a bit of a strange day, as the cheese spot market moved lower, yet Class III futures were higher. But the futures market had fallen quite a bit over the past few trading days, so perhaps it was just catching its breath today? Meanwhile, grain markets moved decisively lower – crop conditions look good and there’s some technical selling as the market tests key support levels in both corn and soybeans. December futures settled at $4.5675 per bushel, the lowest since February. The main watch factor for tomorrow – what will the USDA Milk Production report show for May?

Nonfat dry milk prices lifted to $1.2075 per pound, up $0.0175, with one lot traded. Meanwhile, the CME cheese market came under pressure, with blocks slipping to $1.8525 per pound, down $0.0075, with 13 loads trading, and barrels sliding to $1.9300, giving up a penny, with seven lots exchanged.

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