MILK
August Class III futures fell below $18 rather quickly since Tuesday as the market is indicating little concern over supply and price reflecting the need for sellers to continue to move product. Underlying cash prices show no indication of breaking out of the sideway ranges they have been in. The result has been price erosion in nearby futures contracts as they move closer to cash. It is surprising that the substantial increase of exports is not having any greater impact on prices. Exports in April were 25.2% higher than April 2020. Lest you think that exports are not that great considering the comparison to export disruption due to COVID, exports were 39.0% higher than April 2019. The value of those exports in April totaled $690.4 million, an increase of 32.5% over April 2020.
AVERAGE CLASS III PRICES
| 3 Month: | $17.30 |
| 6 Month: | $17.92 |
| 9 Month: | $17.99 |
| 12 Month: | $17.96 |
CHEESE
Cheese exports in April were up 51.2% over a year ago, totaling 40,423 metric tons. This also was 22.7% above the amount exported in April 2019. Year-to-date exports are 11.6% above the same period last year. Dry whey exports totaled 54,379 metric tons, up 27.6% over April 2020 and 47.0% above April 2019. Year-to-date exports are 25.1% higher than a year ago.
BUTTER
Butter exports were the star of the export business in April with an increase of 257.0%, totaling 5,423 metric tons. This was 284.3% higher than April 2019. Year-to-date exports of butter are 146.1% higher than the same period a year ago. Skim milk powder/nonfat dry milk exports totaled 78,495 metric tons, up 15.0% from last year and up 38.2% over 2019. Year-to-date exports are up 17.8% over a year ago. Whole milk powder exports reached 4,766 metric tons, up 77.6% over April 2020 and up 91.9% above April 2019. Year-to-date exports are up 23.2% over last year.
OUTSIDE MARKETS SUMMARY
July corn gained 5.50 cents, closing at $6.7. July soybeans declined 17.25 cents, ending at $14.4850, with July soybean meal up $6.80 per ton, closing at $379.20. July wheat gained 1.25 cents, ending at $6.6275. June live cattle jumped $1.07, closing at $122.30. July crude oil gained $0.03, ending at $72.15 per barrel. The Dow is down 264 points at 34,035 at the time of this writing with the NASDAQ down 33 points at 14.0490.
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