Class III milk contracts for the 2nd half of this year are trending higher supported in part by expectations of tempered milk output growth this summer and fall. The current June through December 2008 class III milk futures average

is just over $20.00 a hundredweight which could translate to roughly $2.05 CME cheese depending on whey and butter prices. The butter market is slowly marching upward. Last year the butter market rose 6% during the next 4 weeks before turning lower.