MILK
Milk futures were under pressure again with most contracts posting losses. August Class III futures barely held above $23. One would think that prices will see some amount of rebound soon, as underlying cash buyers might become more aggressive due to the lower prices. However, it is difficult to determine how much impact is being felt from inflation as far as demand is concerned. There currently are no real indications that demand has suffered noticeably other than butter demand from retail has seen some slowing but not yet from the food service industry. There is a strong possibility that demand for dairy will remain even though food prices are increasing. The South Dairy Trade information was released Tuesday. Argentina saw 117,742.62 tons of dairy products move through its ports during the last half of March to 19 destinations at an average price of $3,478.40 per ton. Whole milk powder price increased 5% to $4,283.20 per ton or $1.95 per pound. Skim milk powder increased 4.1% to $3,613.57 per ton or $1.64 per pound. Semi-hard cheese increased 2.0% to $4,089 per ton or $1.86 per pound. Hard cheese declined 2.5% to $6,185.97 per ton or $2.81 per pound. Butter price remained steady from the previous period at $5,293.79 per ton or $2.40 per pound. Uruguay had 10,570.63 tons of dairy products move through its ports to 31 destinations during the first half of April at an average price of $4,154.66 per ton. Whole milk powder gained 2.0% to $4,01975 per ton or $1.83 per pound. Skim milk powder declined 0.8% to $3,698.06 per ton or $1.68. Semi-hard cheese increased 1.1% to $4,075.54 per ton or $1.85 per pound. Hard cheese price increased 0.5% to $5,903.94 per ton or $2.68 per pound. Butter increased 1.7% to $5,577.57 per ton or $2.53 per pound. Buttermilk price declined 0.3% to $2,933 per ton or $1.33 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $23.85 |
| 6 Month: | $23.34 |
| 9 Month: | $22.81 |
| 12 Month: | $22.14 |
CHEESE
The bounce in block cheese price from the lows during spot trading may increase the desire of buyers to be more aggressive to take advantage of lower prices without having to chase the market. However, it seems the upside might be limited as buyers might not need to be aggressive as they already have some cheese purchased. Nevertheless, demand is good, and buyers may want to increase ownership.
BUTTER
Butter is in good demand internationally. U.S. price is now right in line with world prices where it had once carried a substantial premium. There seems to be sufficient to meet demand all around. This could keep prices moving sideways to lower in the near term as summer demand unfolds.
Outside Markets Summary
May corn gained 2 cents, closing at $7.8650 per pound. May soybeans gained 9 cents, closing at $16.30, with May soybean meal down $3.20 per ton, closing at $407.90. May wheat closed unchanged at $10.8325. June live cattle declined $1.15, ending at $132.40. The Dow closed 85 points lower at 32,161, while the NASAQ gained 114 points, closing at 11,738.
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