MILK
Class III milk futures reversed the losses of Monday. This is a little surprising as blocks declined Monday while barrels increased. Tuesday, blocks remained unchanged while barrels declined. Just the opposite trading in Class III futures activity took place each day. The Global Dairy Trade auction took place Tuesday with the trade-weighted average down 1.0%. This is the second consecutive event with a decline. There were 159 bidders with a total of 21,511 metric tons sold. Anhydrous milk fat declined 2.5% to $6,908 metric tons or $3.31 per pound. Butter declined 0.6% to $6,891 per metric ton or $3.13 per pound. Buttermilk powder gained 6.3% to $4,461 per metric ton or $2.20 per pound. Cheddar cheese increased 2.7% to $6,472 per metric ton or $2.94 per pound. Lactose declined 0.6% to $1,598 per metric ton or $0.72 per pound. Skim milk powder increased 1.0% to $4,599 per metric ton or $2.09 per pound. Whole milk powder declined 1.5% to $4,532 per metric ton or $2.08 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $24.17 |
| 6 Month: | $24.14 |
| 9 Month: | $23.90 |
| 12 Month: | $23.39 |
CHEESE
No business was done in the spot market Monday with either buyers and sellers generally satisfied with current supply, or one is waiting for the other to set direction. The minor decline of barrels did not affect the optimism of traders. Cheese remains competitive on the international market as price is 68 cents below the Global Dairy Trade auction price. Manufacturers are busy keeping up with demand as well as trying to rebuild some inventory.
BUTTER
Price continues to move within a range and is expected to continue that pattern for the near term. Buyers and sellers seem comfortable in the current price range. Churning is active with sufficient supply available for current demand as well as rebuilding inventory. A few food service industry contracts indicate a slight slowing of demand, which may be the result of inflation and high fuel prices.
OUTSIDE MARKETS SUMMARY
May corn gained 9.25 cents, closing at $7.5975. May soybeans jumped 28.75 cents, ending at $16.31, with May soybean meal up $10.80 per ton, closing at $465.90. May wheat jumped 35 cents, closing at $10.4525. April live cattle declined $1.20, closing at $136.80. May crude oil lost $1.32, closing at $101.96 per barrel. The Dow declined 282 points, closing at 34,641, while the NASDAQ fell 328 points, closing at 14,204.
