MILK
Class III milk futures continue to creep higher with only June posting a double-digit gain. Cheese prices remain supported, resulting in more confidence of traders to buy into the market in anticipation of higher prices. Weather remains good across much of the country, which is conducive for milk production growth. Spring is basically upon us with production growing as the time progresses. Field work is getting going in some places with others getting ready to plant. Early planting could mean bigger yields if the rest of the growing year is somewhat normal. The Global Dairy Trade action trade-weighted average increased 0.3% Tuesday. Anhydrous milk fat price increased 0.8% to $6,209 per metric ton or $2.82 per pound. Butter gained 2.0% to $5,776 per metric ton or $2.62 per pound. Buttermilk powder jumped 17.6% to $3,710 per metric ton or $1.68 per pound. Cheddar cheese price gained 2.2% to $4,393 per metric ton or $1.99 per pound. Lactose declined 6.5% to $1,307 per metric ton or $0.59 per pound. Skim milk powder slipped 0.6% to $3,367 per metric ton or $1.53 per pound. Whole milk powder was unchanged from the previous even at $4,085 per metric ton or $1.85 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $18.31 |
| 6 Month: | $18.55 |
| 9 Month: | $18.48 |
| 12 Month: | $18.26 |
CHEESE
Prices are not increasing by leaps and bounds, but they are slowly working higher. It is as if blocks and barrels are a tag team with one moving higher while the other remains steady only to have it the other way around the following day. Light trading activity continues to dominate the market, resulting in higher prices. Demand fundamentals are supportive, while at the same time, growth of milk production is bearish. It all comes down to demand.
BUTTER
Butter price is taking a breather after an incredible run higher. Price could move in a sideways pattern for a period as the market responds to increasing demand from the foodservice industry and balances that with production and inventory. The current market is somewhat bullish with the potential for price to reach back to the highs of early June at slightly over $2.
OUTSIDE MARKETS SUMMARY
May corn gained a penny, closing at $5.5425. May soybeans gained 6 cents, ending at $14.1875, with May soybean meal up $0.10 per ton, ending at $406.40. May wheat declined 2.50 cents, ending at $6.1550. April live cattle jumped $1.35, closing at $122.72. May crude oil gained $0.68, closing at $59.33 per barrel. The Dow declined 97 points, ending at 33,430, while the NASDAQ slipped 7 points, ending at 13,698.
