MILK:
Milk production increases are varying across the country. Some areas indicate production is fairly steady, while others indicate milk receipts continue to increase. This keeps processing facilities running on full schedules. So far, plants have been able to handle the milk, but some plants are urging farmers to hold the line on milk production to avoid having to implement strict supply management for a period of time. Fluid milk sales are steady. Retail dairy sales are generally steady with some slowing indicated as restaurant traffic increases. Some restaurants indicate business has returned to pre-pandemic levels. The larger problem they are having is finding sufficient employees. USDA will release the March Agricultural Prices report Friday, which will show a lower income over feed that it did in February. However, it may not be too much different due to March being a period during which corn price and soybean meal prices were relatively stable. The real increases of grain prices took place in April.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.83 |
| 6 Month: | $19.23 |
| 9 Month: | $19.11 |
| 12 Month: | $18.85 |
CHEESE:
Cheese plants indicate they are receiving sufficient milk supply to keep plants running at capacity and customers satisfied. Buyers of cheese are balancing the potential for higher prices with the apprehension of owning too much. There has been some interest in purchasing cheese ahead of time as a hedge against the potential for higher cheese prices later in the year due to the impact of high grain prices on milk production. However, there also is the potential for cheese prices to decline if weather is positive for crop development and more acres are planted and milk production remains strong. Buyers do not want to be left owning too much inventory.
BUTTER:
There are reports that retail orders have slowed somewhat. Demand still remains strong, but more people are eating meals away from home, increasing demand from the food service industry. Butter inventory remains significantly higher than last year, but strong demand has limited inventory build. Cream is still readily available, keeping churns active.
OUTSIDE MARKETS SUMMARY:
May corn declined 9.25 cents, closing at $6.8225. May soybeans gained 8 cents, closing at $15.5775 with May soybean meal down $4.20 per ton, closing at $421.30. May wheat declined 8.50 cents, ending at $7.2525. April live cattle gained $0.57, ending at $118.95. June crude oil gained $0.92, closing at $63.86 per barrel. The DOW gained 165 points, closing at 33,820 while the NASDAQ declined 39 points, ending at 14,051.
