MILK
Class III milk futures moved through the morning rather cautious, but garnered some support as spot trading drew near. However, that support faded as underlying cheese prices declined. The weakness was offset to some extent by the increase of dry whey. Class IV futures were mixed into the close due to the weakness of butter after a strong trend higher. Traders will take a wait-and-see attitude through the overnight and tomorrow until spot trading resumes. Front month May milk futures adjusted higher today after the numbers on the AMS weekly dairy products report were released yesterday. Prices will flat line tomorrow and Tuesday until the May contract ceases trading. There will be no trading on Monday due to Memorial Day. The extended weekend is not expected to impact the business that will take place tomorrow. There is quite a bit more fluid milk moving to manufacturing which should bolster the supply of cheese. Spot milk is running $1.50 to $2.50 below class in the Central region of the country. Some areas of the West report spot milk prices $3.00 to as much as $6.00 under class as labor shortages abound.
AVERAGE CLASS III PRICES
| 3 Month: | $24.60 |
| 6 Month: | $24.27 |
| 9 Month: | $23.72 |
| 12 Month: | $23.02 |
CHEESE
Cheese prices have declined over the past three days, and one has to wonder whether that trend will continue tomorrow. Based on the trading action today, traders will be cautious due to blocks not being able to hold the highs during spot trading and barrels bouncing back from their lows. Food service demand for cheese has been rather stabile while retail demand is reported to be softer. Dairy Market News reported that buyers from Asia are purchasing loads of cheese for shipment in early 2023. That is really thinking ahead.
BUTTER
Cream is more available at present time as Memorial Day approaches. Some plants are scheduling maintenance and will be diverting some cream during downtimes. The slight weakness of spot butter today might indicate the upward momentum of price might have run its course for the time being. Butter futures did not move in step with the increase spot price and hold a discount to the current cash price.
OUTSIDE MARKETS SUMMARY
July corn declined 7.25 cents closing at $7.65. July soybeans jumped 45.50 cents closing at $17.2650 with July soybean meal up $4.00 per ton closing at $428.20. July wheat declined 5 cents closing at $11.4325. June live cattle increased $0.10 ending at $132.40. July crude oil jumped $3.76 closing at $114.09 per barrel. The DOW jumped 517 points closing at 32,637 while the NASDAQ gained 306 points closing at 11,741.
