MILK
Spot milk in some cases is carrying a discount in the Central region. Cheese manufacturers are quickly purchasing what is available, as they want to keep plants running efficiently and increase inventory for later demand. Milk production is variable across the country with cows responding to the warmer weather, primarily in the Southern regions. Milk plants are far from being overwhelmed with milk but are beginning to see an uptick of milk receipts. Spring flush is just around the corner but not expected to be as heavy as usual. However, many plants continue to suffer from lack of employees, which may result is increased milk production causing some problems with processing ability. Lower-than-usual milk production during spring flush may still overwhelm plants in some cases. Class III futures came back from the lows somewhat but still closed lower. Continued trading after the market settled for the day indicates further weakness in overnight trade. The decline of cheese may mean further weakness could develop.
AVERAGE CLASS III PRICES
| 3 Month: | $23.22 |
| 6 Month: | $23.62 |
| 9 Month: | $23.56 |
| 12 Month: | $23.09 |
CHEESE
The decline of block cheese was a bit more than expected. Price has now declined 11.25 cents over the past three days and the largest price decline since January. However, traders remain bullish and are minimizing the losses on the futures markets. Lower milk production and the potential for tighter supply is a concern for buyers. However, if demand slows, lower cheese production will keep up with demand.
BUTTER
There are reports that some butter manufacturers are indicating they are in good shape with their fall inventories of butter already. They have been looking further ahead and compensating for both the potential of tighter milk supply and ongoing problems with hauling and deliveries. Some retail and food service orders are being placed substantially earlier than usual.
OUTSIDE MARKETS SUMMARY
May corn futures gained 9.75 cents, closing at $7.58. May soybeans declined 11.75, closing at $16.5875, with May soybean meal down $0.30, closing at $484 per ton. May wheat jumped 58 cents, closing at $11.5425. April live cattle gained $0.52, closing at $140.85. April crude oil fell $6.57 per barrel, closing at $96.44. The Dow jumped 599 points, ending at 33,544, while the NASDAQ gained 367 points, closing at 12,949.
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