MILK
Pressure on milk futures stemmed from the weakness of most of the categories of spot trading. The only gain was in the barrel price, which was unable to hold the initial gain during the trading period. Greater pressure was put on Class IV futures, resulting in May through August Class IV futures falling below Class III futures where they have not been for quite some time. The South Dairy Trade report was released Tuesday. This report records dairy product movement to the export market through ports in Argentina and Uruguay. The average price per ton of dairy products moved through ports in Argentina for the first half of March totaled 18,298.04 tons to 16 destinations at an average price of 4,053.39 per ton. Whole milk powder increased 1.2% from the previous report to 4,078.31 per ton or $1.85 per pound. Skim milk powder gained 2.0% to $3,471.73 per ton or $1.58 per pound. Semi-hard cheese declined 1.9% to $4,010.47 per ton or $1.82 per pound. Hard cheese increased 5.3% to $6,345.63 per ton or $2.88 per pound. Exports through Uruguay for the first half of April totaled 5,773.24 tons at an average price of $4,083.31 per ton to 21 destinations. Whole milk powder increased 1.8% to $3,941 per ton or $1.79. Skim milk powder increased 3.2% to $3,729.39 or $1.63 per pound. Semi-hard cheese declined 1.7% to $4,029.47 per ton or $1.83 per pound. Hard cheese jumped 12.1% to $5,874.59 per ton or $2.67 per pound. Butter increased 1.0% to $5,484.34 per ton or $2.49 per pound. Buttermilk fell 29.0% to $2,941.33 per ton or $1.34 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $24.55 |
| 6 Month: | $24.31 |
| 9 Month: | $23.90 |
| 12 Month: | $23.35 |
CHEESE
The inability of barrels to hold the gain Tuesday during spot trading and the weakness of blocks does not bode well in the near term. The market is not overwhelmed with milk or products. It is trying to balance supply with demand. The market does not want to price cheese above what consumers are willing to pay, which would result in slowing demand. Dry whey is struggling, as that is likely what has happened in that market. Price moved to a record high, which slowed demand that lower prices have not yet been able to win back for the time being.
BUTTER
The slow grind lower for butter and the decline of nonfat dry milk has affected Class IV futures significantly. Retail demand for butter has slowed in some areas but remains good overall. Churning is active and butter stocks have increased. This reduces some of the concern of buyers have over supply.
OUTSIDE MARKETS SUMMARY
May corn increased 3 cents, closing at $8.0325. May soybeans increased 1.75 cents, closing at $17.0525, with May soybean meal down $7.60 per ton, closing at $448.80. May wheat jumped 21.25 cents, ending at $10.8325. April live cattle gained $0.90, ending at $140. June crude oil jumped $3.16, closing at $101.70 per barrel. The Dow fell 809 points, closing at 33,240, while the NASDAQ fell 514 points, closing at 12,491.
