MILK
Class III ended for a second day with small, mixed movements. Trading continues to be lighter this week than the past week. Last year, the markets responded with sharp moves after each announcement of the Farm to Families Food Box Program. USDA is currently soliciting comments on how to improve or change the program moving forward. Many areas that saw widespread COVID-related closures are still struggling to build back and would welcome an extension of food assistance for those in need. While the benefits of healthy dairy products are a great fit in food programs, last year's government purchases caused market disruptions. The ideal program would support producers across the United States with more regularity and equality than in the past year. USDA is accepting comments on any potential plans through the end of the month.
AVERAGE CLASS III PRICES
| 3 Month: | $16.98 |
| 6 Month: | $17.53 |
| 9 Month: | $17.82 |
| 12 Month: | $17.78 |
CHEESE
Retail demand for cheese is at a fork in the road. More states are lifting restrictions and events are being planned for the summer, but the fears of moving too quickly back to normal have kept home refrigerators stocked. Grocery store purchases of cheese have maintained strong levels throughout 2020, even as the retail price of cheese reached its highest value in years. Foodservice purchases may stay tight, not wanting excessive inventories just yet.
BUTTER
Butter continues to strengthen, with spot butter price reaching back to June 2020. At that time, prices rose quickly and peaked at $2.0150 on June 4 before tapering off by the end of the month to levels similar to what we have seen this month. Foodservice may stock butter sooner than other dairy products in preparation for future events given its more flexible storage options.
OUTSIDE MARKETS SUMMARY
May corn decreased 7.50 cents, closing at $5.3925. May soybeans dropped 26.25 cents, ending at $13.6675, while May soybean meal increased just $0.10 per ton, closing at $398.20. May wheat fell 15 cents closing at $6.0175. April live cattle was unchanged to close at $120.97. May crude oil declined $1.01, closing at $60.55 per barrel. The Dow fell 104 points, closing at 33,067, while the NASDAQ also declined, moving back 14 points, closing at 13,045.
