MILK
Class III futures are nearing the levels they were at the end of March from which futures rallied back up to establish new highs. Current lower prices could bring some buying interest into the spot market, which could trigger buying interest in futures again. It may be more difficult to rally to new highs again, as dry whey prices have declined from that time. Class IV futures have moved differently, moving almost steadily higher from the end of February until late March and then falling from there. The Global Dairy Trade auction trade-weighted average declined 8.5% on Tuesday's event. Anhydrous milk fat price fell 12.1% to $6,008 per metric ton or $2.73 per pound. Butter price fell 12.5% to $5,807 per metric ton or $2.63 per pound. Buttermilk powder declined 6.1% to $4,203 per metric ton or $1.91 per pound. Cheddar cheese price declined 8.6% to $5,652 per metric ton to $2.56 per pound. Skim milk powder declined 6.5% to $4,130 per metric ton or $1.87 per pound. Whole milk powder declined 6.5% to $3,916 per metric ton or $1.78 per pound. This is the fourth consecutive event with a decline of the trade-weighted average. There were 132 participants with 25,163 metric tons sold.
Average Class III Prices
| 3 Month: | $23.96 |
| 6 Month: | $23.53 |
| 9 Month: | $22.99 |
| 12 Month: | $22.34 |
CHEESE
Cheese prices have been consolidating for more than two weeks. Buyers and sellers are taking care of business without having to chase the market. Demand is good with manufacturing keeping with orders. Inventory has not been able to rebuild as of March, which indicates a balanced market. More milk will be available for manufacturing over the next month as schools and colleges close for the summer with less fluid milk generally consumed during the summer.
BUTTER
Price is struggling with the potential to move below the previous low of last week, which would move it back to the lowest level since February. Sellers continue to bring supply to the spot market to move it rather than hold it for a higher price that may not materialize anytime soon. There is further downside price risk, but it may remain within the confines of the range established earlier this year.
OUTSIDE MARKETS SUMMARY
May corn fell 12.25 cents, closing at $8.0075. May soybeans fell 15 cents, ending at $16.59, with May soybean meal down $6.50 per ton, closing at $436.40. May wheat declined 9.75 cents, closing at $10.3375. June live cattle closed $0.12 higher at $135.32. June crude oil fell $2.76, closing at $102.41 per barrel. The Dow gained 67 points, closing at 33,129, while the NASDAQ gained 28 points, closing at 12,564.
