MILK
There was renewed optimism after the release of the milk production report Wednesday. Cow numbers remaining the same as the previous month along with production per cow also unchanged from the previous year renewed the bullish outlook for the time being. USDA will release the April Cold Storage report on Monday, providing information as to demand depending on what inventory had done. July Class III futures touched $25 Thursday but could not hold that level. The last time the contract had been at that level was on April 25. Front-month May increased to $25.12 due to the higher prices on the AMS weekly price report released Wednesday. Class IV futures had May, June and July contracts closing above $25. The June Class I price was announced Wednesday at $25.87, an increase of $0.42 from May. The average Class III milk price this year using already announced prices as well as closing futures for May through the end of the year puts the average price potential for this year around $1 higher than the previous record of 2014.
AVERAGE CLASS III PRICES
| 3 Month: | $24.92 |
| 6 Month: | $24.46 |
| 9 Month: | $23.76 |
| 12 Month: | $22.95 |
CHEESE
Domestic demand for cheese continues to remain good with no real evidence of a slowdown. However, consumers are seeing higher prices at the grocery store, which could have an impact over time as consumers adjust to higher food prices along with higher prices for everything else. Some manufacturing plants continue to report labor shortages, which is resulting in plants running at capacity for the available workforce but running below capacity for what the plant can handle.
BUTTER
Cream supply is available to meet demands of butter production. Supplies are expected to tighten somewhat as time progresses. Butter demand at the retail level has declined slightly due to higher prices and seasonal demand. Buyers are trying to increase ownership for demand later in the year.
OUTSIDE MARKETS SUMMARY
July corn gained 1.75 cents, closing at $7.8325. July soybeans jumped 27.75 cents, closing at $16.9050, with July soybean meal up $11.30 per ton, closing at $425.30. July wheat fell 30.25 cents, ending at $12.0050. June live cattle closed unchanged at $131.50. June crude oil gained $1.85, closing at $111.44 per barrel. The Dow lost 237 points, closing at 31,253, while the NASDAQ slipped 30 points, ending at 11,389.
