MILK
Futures price movements were nothing to write home about Monday, being rather subdued based on the increase of cash prices. The steep decline will not be forgotten, and traders are not buying back into the market quickly because of two days of cheese price increases. There is concern that once buyer interest is again filled, there might be another void under the market. Milk production is increasing as spring flush is gearing up. Weather is good for cow comfort. There is increasing concern over the dry weather in many areas and just how much that will expand as the growing season progresses. The potential for significantly higher grain prices and the impact it might have on milk production is keeping the market on edge. This may keep buyers more aggressive in the spot market as they increase ownership of supply for projected upcoming demand. However, milk output is not expected to slow anytime soon as the potential for higher milk prices is strong. This will keep the market choppy and will keep traders wound up and quick to jump in and out of the market.
AVERAGE CLASS III PRICES
| 3 Month: | $18.64 |
| 6 Month: | $18.79 |
| 9 Month: | $18.66 |
| 12 Month: | $18.45 |
CHEESE
Overall cheese prices are in an uptrend, but it may take some time to push through the high of Jan. 11. Demand has been strong as the pipeline for the foodservice industry is replenished. Much of that has been accomplished, leaving it up to regular demand to carry the baton. There is no shortage of milk for manufacturing, keeping plants running at capacity.
BUTTER
Butter has strong price support. Both retail and export demand has been doing well. Much of the butter being manufactured is moving to the market will little moving to inventory. This is certainly supportive to price for the near term. The market may begin to stabilize for a period as higher price is having some impact on demand. Price has been very competitive on the world market, and the Global Dairy Trade auction Tuesday will indicate whether world price remains strong.
OUTSIDE MARKETS SUMMARY
May corn gained 6.50 cents, closing at $5.92. May soybeans jumped 16.50 cents, closing at $14.4975, with May soybean meal price up $5.30 per ton, closing at $407.50. May wheat slipped 0.25 cent, ending at $6.5225. April live cattle declined $0.50, ending at $120.35. May crude oil gained $0.25, closing at $63.38 per barrel. The Dow declined 123 points, ending at 34,078, while the NASDAQ declined 138 points, closing at 13,915.
