MILK:
Some areas of the country are in spring flush with other areas indicating spring flush is coming earlier than usual. Milk receipts at the plant level are increasing as expected and are running higher than year earlier levels. Bottled milk demand is running fairly steady during recent weeks. The price outlook for milk has turned rather bullish as May through August Class III futures closed at and above $19.00. If these prices remain or increase further, income will keep pace with the rising cost of feed. USDA will release the World Agricultural Supply and Demand report on Friday, which will provide estimated milk production as well as projections for milk prices and product prices. The report will not be a market mover but will provide numbers based on the possibility of milk prices and products following the current direction.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.67 |
| 6 Month: | $18.85 |
| 9 Month: | $18.69 |
| 12 Month: | $18.42 |
CHEESE:
The increase of both blocks and barrels Wednesday indicated buyers continue to want to gain ownership of product. Food service demand has been stronger than expected so far this year as restaurant restrictions are being lifted. People seem to have a pent-up willingness to get back to eating away from home again. Cheese demand through regular channels in the country has been strong, leaving little need for sellers to come to the daily spot market to move product. Spot milk prices are seeing lesser discounts over the past week or so as demand improves.
BUTTER:
Retail butter sales were strong, moving into the Easter season, but have since turned to more of a seasonal decline. However, overall demand remains good with export demand increasing. The U.S butter price at $1.8150 and the world price at $2.62 make it very attractive to the international buyer. That should continue to support price even though it has slipped over the past three days.
OUTSIDE MAREKTS SUMMARY:
May corn gained 6.25 cents, closing at $6.6050. May soybeans fell 10.75 cents, ending at $14.08 with May soybean meal up $2.70, closing at $409.10 per ton. May wheat increased a penny, closing at $6.1650. April live cattle gained $0.42, closing at $123.15. May crude oil gained $0.44, ending at $59.77 per barrel. The DOW closed 16 points higher at 33,446 while the NASDAQ slipped 9 points, ending at 13,689.
