MILK
Milk production continues to improve across much of the country. However, temperatures in some areas have increased significantly recently, resulting in some of the milk production growth slowing as both cows and farms adjust to the rapid swing of temperatures. Milk component values this spring have been exceptionally good, primarily in the Midwest. It will be interesting to see whether this will hold or increase further. Bottling for school accounts is winding down as plants prepare for the summer slump. More milk will be made available for manufacturing, potentially allowing for inventory to increase seasonally. There is greater concern developing over demand as prices rise at the retail level. It will be determined by what consumers feel is more important for their diets. There was greater interest in dairy products during the early stages of COVID, which has carried through. The test will be during this period of inflation to see whether other products will see reduced demand while some hold strong demand or whether consumers will cut back across the board.
AVERAGE CLASS III PRICES
| 3 Month: | $24.18 |
| 6 Month: | $23.62 |
| 9 Month: | $23.03 |
| 12 Month: | $22.32 |
CHEESE
For the week, blocks declined 4.25 cents with 14 loads traded. Barrel cheese price increased 1.50 cents with only two loads traded. Dry whey declined 5.25 cents with nine loads traded. Prices floundered with little direction as buyer and sellers took care of business without fanfare. The weakness of dry whey makes it a bit of an anchor not only on cheese but on Class III futures as well. Cheese futures show some premium to current cash through July but then a steady price decrease into next year. Not a lot of optimism as the year progresses. That can change quickly, but it provides a look at the general trade outlook.
BUTTER
For the week, butter increased 6.50 cents with 18 loads traded. grade A nonfat dry milk price declined a penny with six loads traded. The increase of butter price was not a change in trend with buyers being satisfied after their aggressive buying Thursday. Price is expected to drift sideways for a period.
OUTSIDE MARKETS SUMMARY
July corn declined 10.25 cents, closing at $7.8125. July soybeans jumped 32.75 cents, closing at $16.4650, with July soybean meal up $13.30 per ton, closing at $409.30. July wheat slipped 1.25 cents, closing at $11.7750. June live cattle closed $0.45 higher at $132.07. June crude oil jumped $4.36, closing at $110.49 per barrel. The Dow jumped 466 points, ending at 32,197, while the NASDAQ jumped 434 points, closing at 11,805.
