MILK:
Milk futures had an impressive week, closing substantially higher. May through November contracts settled back Friday, while later contracts closed higher. There were double-digit gains in July through December 2022 contracts, which was surprising but not unheard of due to light trading activity or none at all as the CME marks its closing prices to the market. It takes averages or the movement of contracts nearby when there have not been any trades. USDA released the World Agricultural Supply and Demand report Friday, which was rather neutral to slightly bearish for grains, but friendly for dairy. USDA raised its estimate for milk production to 227.7 billion pounds, up 400 million pounds from the March estimate. If this comes to fruition, it would be an increase of 4.5 billion pounds from last year and another record. On a fat basis, the increase in dairy product production will be more than offset by strong declines in dairy product imports, resulting in ending stocks to decline 400 million pounds. On a skim-solids basis, lower imports and increased marketings will be offset by a slight increase of ending stocks. The Class III average milk price was raised to $17.10, up $0.35, Class IV was raised to $15.15, up $0.70, and the all-milk price was raised to $18.40, up $0.65. Corn ending stocks are estimated at 1.352 billion bushels and soybean ending stocks are estimated at 120 million bushels. Both were slightly above the trade expectations.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.84 |
| 6 Month: | $18.95 |
| 9 Month: | $18.77 |
| 12 Month: | $18.49 |
CHEESE:
For the week, blocks increased 5.50 cents with 21 loads traded. Barrels jumped 18 cents with 13 loads traded. Dry whey declined 3 cents with two loads traded. USDA raised its estimate for cheese price 1.50 cents to an average of $1.7150 this year. Dry whey price was raised 2.50 cents to an average of 52.50 cents. The cheese price would be 21 cents lower than last year, while the dry whey price would be 16.50 cents higher.
BUTTER:
For the week, butter gained 3.50 cents with 23 loads traded. Grade A nonfat dry milk increased 1.50 cents with seven loads traded. USDA raised its estimate for butter price 11.50 cents from March to an average of $1.73. This would be 15 cents higher than last year. The nonfat dry milk price was raised to $1.16, an increase of 2 cents over the previous estimate. This would be 12 cents higher than last year.
OUTSIDE MARKETS SUMMARY:
May corn declined 2.50 cents, closing at $5.7725. May soybeans declined 12.25 cents, closing at $14.03, with May soybean meal down $5.60, closing at $401.20 per ton. May wheat gained 10 cents, ending at $6.3875. April live cattle declined $0.72, ending at $123.42. May crude oil declined $0.28, closing at $59.32 per barrel. The Dow gained 297 points, closing at 33,801, while the NASDAQ gained 71 points, closing at 13,900.
