MILK:
Milk futures were generally higher Friday as the increase of cheese prices continued to provide support. It is interesting that the July contract for both Class III and Class IV was a penny lower and the only decline in both markets. It has been a positive week for milk futures. USDA released the World Agricultural Supply and Demand report Friday, which contained their estimates for milk production, milk prices and product prices for the year. The milk production estimate was raised 300 million pounds from their March estimate reaching a total for 226.3 billion pounds. If this would come to fruition it would show no growth this year as milk production for 2021 was 226.3 billion pounds. The average Class III price was raised to $22.75, an increase of $1.10 per cwt since the March estimate. The Class IV average price was raised $0.35 to the level of $24.05. The expectation is for Class IV to remain above Class III the rest of the year. The all-milk price was raised $0.75 to an average of $25.80.
AVERAGE CLASS III PRICES:
| 3 Month: | $24.56 |
| 6 Month: | $24.46 |
| 9 Month: | $24.16 |
| 12 Month: | $23.60 |
CHEESE:
For the week, blocks increased 2.50 cents with nine loads traded. Barrels increased 11.50 cents with 21 loads traded. Dry whey increased 2.50 cents with eight loads traded. USDA was very generous with their average estimate for cheese price this year. They raised the price 12 cents per pound from March to an average of $2.15. In contrast, they lowered the dry whey price 2 cents to an average of 69 cents per pound.
BUTTER:
For the week, butter increased 7.25 cents with 19 loads traded. Grade A nonfat dry milk declined 2.75 cents with 16 loads traded. USDA raised their estimate of butter price by 6.50 cents from March to an average of $2.64 per pound. The nonfat dry milk price was raised only 0.50 cent to an average of $1.7450 per pound. These are estimates and much can change before it is all said and done.
OUTSIDE MARKETS SUMMARY:
May corn gained 11 cents, closing at $7.6875. May soybeans jumped 43.50 cents, ending at $16.89 with May soybean meal up $468.20 per ton. May wheat jumped 31.50 cents, closing at $10.5150. April live cattle slipped $0.17, ending at $137.82. May crude oil closed at $98.26, up $2.23 per barrel. The DOW gained 138 points, closing at 34,721 while the NASDAQ declined 186 points, closing at 13,711.
