The July issue of the National Milk Producers Federation (NMPF) and Dairy Management Inc. Dairy Market Report is not out and suggests milk prices will likely bottomed out for the year. Find the complete report here.

June Federal Milk Marketing Order prices were up over the previous month, as were Class III and Class IV prices. The dairy futures markets suggest that milk prices have likely bottomed out for the year, following a drop of $0.50 per hundredweight in May. In other positive developments, domestic commercial use of milk continues to expand faster than milk production, while record stocks of butter and American-type cheese in May did not restrain increases in Chicago Mercantile cash prices for these products that month. However, the monthly Margin Protection Program margin dropped more than a dollar per hundredweight in May on the lower milk price and higher feed costs.