Friday Closing Dairy Market Update - Grade A Non-Fat Dry Milk the Star of the Week

GENERAL OVERVIEW:

Grade A non-fat dry milk had an amazing week with record-breaking prices every day this week. The demand is unfaltering, and it is supporting Class IV despite butter's massive decline.

MILK:

Class IV Milk had a small setback from last week's close but is still firmly above $21.00 for the May and June futures contracts. Class III milk fell below $17.00 on the May contract today, falling 42 cents to the low of the week and rebounding back to $16.97 at the close. Spring flush is here, and production is ramping up in an already saturated market. The Strait of Hormuz is currently open, the stock market is rallying, while crude has fallen sharply. Should the canal remain open, this should support demand with economic support and help with fuel costs on farm and to ship products.

AVERAGE CLASS III PRICES:

3 Month:	$17.24
6 Month:	$17.97
9 Month:	$18.11
12 Month:	$17.96

CHEESE:

For the week, blocks declined 3.15 cents with 22 loads traded. The weekly average price is $1.5765. Barrels declined 0.90 cents with no loads traded. The weekly average price is $1.5750. Dry whey increased 0.30 cents with four loads traded. The weekly average price is 70 cents. Blocks had moderate interest this week, while there was limited to no interest in buying or selling barrels. Traders are expecting steady prices for the next few weeks and optimism for retail demand.

BUTTER:

For the week, butter increased 0.80 cents with 47 loads traded. The weekly average price is $1.7505. Grade A nonfat dry milk increased 13.45 cents with 22 loads traded. The weekly average price is $2.1640. Butter had a little excitement this week, peaking at $1.79 on Tuesday and falling to $1.69 by Friday. That 10-cent drop weighed heavily on Class IV prices, however Grade A non-fat dry milk was the star of the show, making new record highs every single day in a historic rally, peaking at $2.20 at Friday's close.

OUTSIDE MARKETS SUMMARY:

May corn closed up 0.25 cent per bushel at $4.4875, May soybeans closed up 3.50 cents at $11.6725 and May soybean meal closed down $.90 per ton at $331.80. May Chicago wheat closed down 7.25 cents at $5.9125. June live cattle closed down $0.28 at $247.35. May crude oil is down 10.84 per barrel at $83.85. The Dow Jones Industrial Average is up 868 points at 49,447 and the NASDAQ is up 365 points at 24,468.

Friday Midday Dairy Market Summary - Butter Falls Again

OUTSIDE MARKETS SUMMARY:

CORN:	2 Lower
SOYBEANS:	1 Lower
SOYBEAN MEAL:	$0.17 Higher
LIVE CATTLE:	$1.08 Lower
DOW JONES:	1099 Points Higher
NASDAQ:	408 Points Higher
CRUDE OIL:	$11.60 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 0.75 cent to close at $1.5775 with 15 loads traded. The barrel cheese price remained unchanged at $1.5750 with no loads traded and no bids or offers on the table yet again. The dry whey price increased 1 cent to close at 69.00 cents, with three loads traded and six offers left at the close. Class III futures are trading 6 cents lower to 6 cents higher. The butter price fell 4.75 cents, closing at $1.69 with 12 loads traded. Grade A nonfat dry milk increased 1.75 cents to close at $2.20 with two loads traded, another record-breaking day. Class IV futures are 8 to 14 cents lower. Butter futures are 0.375 cent lower to 0.7 cents lower. Dry whey futures are 0.05 cents lower to 0.625 cents lower. Cheese futures are 0.7 cents lower to 0.1 cents higher.

Friday Morning Dairy Market Update - Buyers of Nonfat Dry Milk Remain Aggressive

OPENING CALLS:

Class III Milk Futures:	2 to 6 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	2 to 3 Lower
Soybean Meal Futures:	Mixed
Wheat Futures:	1 to 2 Higher

MILK:

Class III milk futures have been mostly in a wide sideways trading range since mid-February. Contracts gave the impression the market would trend higher as traders moved futures contrary to the underlying cash on numerous days. Traders held some optimism demand would improve and absorb the increased production. Class IV futures showed little reaction to the decline of the butter, as traders focused on the continued gain in nonfat dry milk. The March Milk Production report will be released next week and is expected to show continued strong milk production and increased cow numbers.

CHEESE:

The block cheese price has been unable to regain the uptrend it had developed earlier. Sellers continue to offer supplies to the spot market. Buyers are willing to purchase what is being offered without being aggressive.

BUTTER:

Butter takes one step ahead and two steps back. The price decline on Thursday opens the way for a revisit to last week's low. If the price moves below that level, it may come under further pressure