MILK
It was interesting to see June Class III milk slightly higher than a week ago. July was slightly lower while August and later contracts were higher for the week. This does not make sense when looking at the movement of cash this week. However, the psychology of the market is bullish with traders anticipating stronger prices as time moves on. This attitude is based on reduced milk production and steady to stronger demand both domestically and internationally. The other side of the coin is whether inflation and a possible recession will have an impact on demand. Lower production would then still leave sufficient supply for demand. Fluid milk sales in March decreased 3.4%. Conventional whole milk sales increased 1.6%; flavored whole milk sales increased 0.8%; reduced fat milk fell 9.9%; Lower fat milk fell 8.8%; fat-free slim milk declined 8.5%; flavored fat-reduced milk sales jumped 17.2%; buttermilk declined 34.1% with other fluid milk product sales down 9.7%. Organic whole milk sales declined 1.2%; organic flavored whole milk increased 2.6%; organic reduced fat milk sales declined 2.2%; organic low fat milk sales fell 13.6%; organic fat-free skim declined 7.9% and organic flavored fat-reduced milk sales fell 29.3%.
AVERAGE CLASS III PRICES
| 3 Month: | $24.77 |
| 6 Month: | $24.46 |
| 9 Month: | $23.90 |
| 12 Month: | $23.17 |
CHEESE
For the week, blocks declined 10 cents with only 3 loads traded. Barrels declined 5.50 cents with 11 loads traded. Dry whey increased 2.50 cents with 10 loads traded. Cheese buyers did not see the need to aggressively purchase product. They have some already purchased ahead and have been a little concerned over the impact a recession might have on demand. Global prices have stalled over the past two months which may impact exports.
BUTTER
For the week, butter gained 2.75 cents with 33 loads traded. Grade A nonfat dry milk price increased 6 cents with 26 loads traded. Price almost reached back to the high of earlier this year but declined over the past two days. Price resistance was reached with buyers stepping back again. Lower output may keep price supported for the time being. Markets will be closed on Monday for Memorial Day.
OUTSIDE MARKETS SUMMARY
July corn jumped 12.25 cents closing at $7.7725. July soybeans gained 5.75 cents closing at $17.3225 with July soybean meal up $4.10 closing at $432.30 per ton. July wheat gained 14.25 cents closing at $11.5750. June live cattle declined $0.22 ending at $132.17. July crude oil gained $0.98 closing at $115.07 per barrel. The DOW jumped 576 points closing at 33,213 while the NASDAQ jumped 390 points closing at 12,131.
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