Milk futures moved in opposite directions Wednesday with Class III futures posting some strong gains while Class IV futures showed moderate losses. It seemed like Class III futures overpriced themselves Tuesday due to the movement of underlying cash, but that was not the case Wednesday. The increase of cheese prices required further gains today to keep up with cash. Milk production is steadily increasing at levels below a year ago, which is understandable. Cow numbers are less with milk per cow not as strong as a year ago. Manufacturing plants are glad to see increasing milk receipts as they want to satisfy orders as well as rebuild inventory. Some plants are actively looking for extra milk supplies to meet their goals of production and inventory growth. Drought is a concern in the general western half of the country which may have a greater impact on milk production as the year progresses unless the weather changes dramatically over the next few months. Lower planted corn acreage and lower hay production could mean significantly higher feed prices.
AVERAGE CLASS III PRICES:| 3 Month: | $24.54 |
| 6 Month: | $24.52 |
| 9 Month: | $24.17 |
| 12 Month: | $23.58 |
Block cheese made a new high for the current trend with price back to the highest level it has been since Nov. 6, 2020. Barrels followed suit, moving to a new recent high, also back to the highest level since Nov. 6, 2020. Prices remain supported by current demand as well as buyers purchasing further ahead of time for expected demand. Dry whey will be the spot market to watch as price possibly fell far enough to where buyers will take a stand for ownership. However, once current bids are filled, futures weakness could unfold.
BUTTER:Dairy Market News reports that retail sales have plateaued now that orders have been filled for Easter. Buyers remain somewhat aggressive as they continue to increase ownership for later this year. Cream remains available but is not as ample as it had been a few weeks ago. Increasing ice cream production is drawing more of the cream supply.
OUTSIDE MARKETS SUMMARY:May corn declined 3.25 cents, closing at $7.5650. May soybeans declined 11.50 cents, ending at $16.1950 with May soybean meal down $4.10 per ton, closing at $461.80. May wheat declined 7 cents, ending at $10.3825. April live cattle gained $0.90, ending at $137.70. May crude oil fell $5.73 per barrel, closing at $96.23. The DOW declined 145 points, ending at 34,497 while the NASDAQ fell 315 points, closing at 13,889.
.jpg)
