MILK:
Class III milk futures in the front months closed substantially lower for the week. June fell $0.85, July fell $0.90 with August down $0.61. Milk futures have fallen drastically over the past three weeks. The concern over escalating feed prices was alleviated to some extent, but certainly has not been eliminated. Much can happen over the growing season to impact crop production and milk prices. USDA released the April Agricultural Prices report today which surprisingly showed an increase of income over feed from March. The average price of corn for April was $5.31, an increase of 42 cents per bushel from March. This compares to a corn price of $3.29 in April 2020. The Central Illinois soybean meal price reached $413.36 per ton in April, up only $3.34 per ton from March. Last year, the soybean meal average price was $295.39 per ton. The blended alfalfa hay price averaged $199 per ton. This blend consists of an alfalfa hay price of $187 per ton and a premium/supreme hay price of $211.00 per ton. This blend is used in the calculation of the income over feed. Hay prices have not changed much over the year. The alfalfa hay price a year ago was $180 per ton. The supreme/premium alfalfa hay price a year ago was $209 per ton. The All-milk price for April was $18.40 per cwt, up $1.00 from March. This compares to an All-milk price a year ago of $14.40. This puts the income over feed cost at $7.13. One year ago, the income over feed cost was $6.03. One would think that income over feed should be lower than last year. Grain prices were less expensive, but the All-milk price was substantially lower. Those who chose the $9.50 level under the DMC program will receive a payment of $2.37 per cwt.
Average Class III Prices:
| 3 Month: | $18.08 |
| 6 Month: | $18.46 |
| 9 Month: | $18.48 |
| 12 Month: | $18.34 |
CHEESE:
Block cheese price quickly fell to the bottom end of the trading range it has been in since November. There has been volatility with price ranging from a high of $1.9625 for a brief period of time after the beginning of the year and a low of $1.51. Unfortunately, current block price is only 2 cents from the low and threatening to break lower. For the week, blocks declined 4 cents with 36 loads traded. Barrel declined 3.75 cents with 33 loads traded. Dry whey declined 2.25 cents with 3 loads traded.
BUTTER:
For the week, butter declined 6 cents with 20 loads traded. Grade A nonfat dry milk price slipped 0.50 cent with 23 loads traded. As you can see, trading activity is generally all categories has increased. Butter has been able to hold well at a higher price as supply and demand seem to be balanced.
OUTSIDE MARKETS SUMMARY:
July corn declined 7.75 cents, ending at $6.5675. July soybeans declined 6.50 cents, ending at $15.3050, with July soybean meal up $5.20 per ton, closing at $395.50 per ton. July wheat fell 12.75 cents, closing at $6.6350. June live cattle declined $0.47, closing at $115.87. July crude oil declined $0.53, closing at $66.32 per barrel. The Dow closed 65 points higher at 34,529, while the NASDAQ gained 12 points, ending at 13,749.
