MILK
Class III milk futures were lower for the week in all contracts except for July. This was a reflection of an overall decline of cheese and dry whey prices. The week was not without volatility, but the result was a bit disappointing. Class IV futures closed steady to higher across the board Friday with prices generally mixed for the week. The market seems to be comfortable at the current price levels, while remaining supported. There is little concern of significant pressure on milk prices at present, but there is some concern over market potential if milk production increases and cow numbers increase. Of course, it will not make a difference if demand remains strong or increases. USDA released the March Agricultural Prices report, which showed an increase in the average corn price from February of $0.46 per bushel and a price of $6.56. The premium/supreme hay price averaged $269 per ton, up $3 per ton from February. The all-milk price averaged $25.90 per cwt, up $1.20 from February. The soybean meal price averaged $493.98 per ton, up $13.02 per ton from the previous month. This resulted in an income-over-feed price of $11.55 compared to $10.98 for February.
AVERAGE CLASS III PRICES
| 3 Month: | $24.45 |
| 6 Month: | $24.28 |
| 9 Month: | $23.86 |
| 12 Month: | $23.22 |
CHEESE
For the week, block cheese price declined 2.25 cents with three loads traded. Barrel cheese price declined 3 cents with 12 loads traded. Dry whey declined 3 cents with 10 loads traded. Business is being done without a lot of fanfare. Prices seem to be moving in a sideways pattern. Demand is good but there is some concern over higher prices having an impact on overall demand as time moves forward. Food prices in general are increasing, which will affect what consumers will purchase.
BUTTER
For the week, butter increased 0.75 cent with nine loads traded. Grade A nonfat dry milk price remained unchanged with eight loads traded. Churning remains active with sufficient cream supply for production. Ice cream production is increasing, utilizing more cream, but there remains sufficient supply available for demand. The increase of price over the past two days was a matter of buyers taking advantage of the low price and not a change in trend.
OUTSIDE MARKETS SUMMARY
May corn gained 2.25 cents, closing at $8.1825. May soybeans gained 1.75 cents, ending at $17.0825, with May soybean meal up $0.30 per ton, closing at $440.50. May wheat fell 30.25 cents, closing at $10.4375. June live cattle declined $1.25, closing at $132.65. June crude oil declined $0.67, ending at $104.69 per barrel. The Dow fell 939 points, closing at 32,977, while the NASDAQ fell 537 points, closing at 12,335.
