MILK
Class III milk futures have been able to climb higher all this week in the nearby months. Class IV futures were not quite as fortunate but still held well overall. This resulted in May and June Class III futures closing above Class IV futures with July not far behind. This certainly is not a detriment to higher prices but will complement each other in the blend price. It will be interesting to see just how far dairy prices will go before there might be some price resistance. At this point, buyers of dairy products are more concerned about increasing ownership for immediate and future consumer demand. No one wants to be caught without sufficient supply when customers want it. Milk production is improving seasonally, which is allowing bottlers and manufacturers to keep up with demand and in some cases build inventory. Some areas of the country are dealing with short supply of milk due to trucking problems and extended delivery delays. Overall milk supply is not short. The March retail milk price was the second-highest on record at $3.92 per gallon. The record-high price was set back in July 2008 at $3.98 per gallon. However, cheese prices declined. American cheese price declined 3.9% to $3.98 with cheddar cheese down 3.4% to $5.47 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $25.03 |
| 6 Month: | $24.86 |
| 9 Month: | $24.48 |
| 12 Month: | $23.88 |
CHEESE
Spot cheese prices either held or increased this week. Blocks gained 5.25 cents with eight loads traded. Barrels increasing 7.25 cents with 12 loads traded. Ten of those loads were traded Thursday. Dry whey price remained steady with two loads traded. Demand for cheese is steady for both retail and the foodservice industry. Current cheese prices are attractive to international buyers, keeping exports strong. More could possibly be exported if it were not for trucking issues and congestion at ports. However, even with that, exports have been doing well.
BUTTER
For the week, butter declined 2.75 cents with five loads traded. Grade A nonfat dry milk remained unchanged with five loads traded. Last week, there had been some increased movement of butter as immediate orders that came in for the holiday were being shipped. With that being finished, the attention has turned back to a focus on third- and fourth-quarter expected demand. Buyers generally feel comfortable with second-quarter supplies.
OUTSIDE MARKETS SUMMARY
May corn gained 6.75 cents, closing at $7.9025. May soybeans gained 6.25 cents, closing at $16.8225, with May soybean meal up $3.20 at $461.40 per ton. May wheat fell 17 cents, closing at $10.9650. April live cattle gained $0.05, ending at $140.67. May crude oil gained $2.70, closing at $106.95 per barrel. The Dow declined 113 points, closing at 34,451, while the NASDAQ declined 21 points, ending at 13.351.
