MILK
Class III futures lost ground Tuesday, moving contracts back into the middle of the trading range that has unfolded since the beginning of March. Milk prices remaining at current levels throughout spring flush would be positive. Buyers continue to increase ownership as a hedge against the potential for a tighter milk supply later in the year. This may keep the market rangebound as higher prices will reduce buying interest, while lower prices will increase buying interest. South Dairy Trade exports and prices were released Tuesday. These are dairy products moved through ports in Argentina and Uruguay during a two-week period. Argentina moved 7,047.87 tons to 28 destinations at an average price of $4,268.39 per ton. Whole milk powder decreased 0.3% to $4,268.41 per ton or $1.93 per pound. Skim milk powder increased 3.7% to $3,747.49 per ton or $1.70 per pound. Semi-hard cheese increased 2.8% to $4,202.68 per ton or $1.91 per pound. Hard cheese decreased 3.5% to $5,970.81 per ton or $2.71 per pound. Butter decreased 5.2% to $5,017.26 per ton or $2.28 per pound. Buttermilk decreased 4.6% to $2,927.55 per ton or $1.33 per pound. Uruguay moved 8,672.25 tons of dairy products to 28 destinations at an average price of $4,253.40 per ton. Whole milk powder increased 4.4% to $4,197.87 per ton or $1.91 per pound. Skim milk powder decreased 0.1% to $3,693.91 per ton or $1.68 per pound. Semi-hard cheese decreased 0.4% to $4060.19 per ton or $1.84 per pound. Hard cheese increased 2.9% to $6,077.03 per ton or $2.76 per pound. Butter increased 1.8% to $5,676.10 per ton or $2.58 per pound, Buttermilk jumped 14.2% to $3,349.40 per ton or $1.52 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $24.52 |
| 6 Month: | $24.10 |
| 9 Month: | $23.53 |
| 12 Month: | $22.83 |
CHEESE
The weakness of cheese does not change the market but is just a matter of buyers holding back, waiting for lower prices again. Buyers reached a threshold at which they were comfortable with the amount of product on hand. Lower prices will stimulate the interest in buying again. Initial weakness Tuesday stemmed from the revision of stocks of American cheese for March as well as an increase of supply in April.
BUTTER
Price continues to remain supported as buyers want to obtain supply to fill orders and increase ownership. It will be difficult to say just how much product they will be purchasing ahead until they feel comfortable with supply.
OUTSIDE MARKETS SUMMARY
July corn fell 14.50 cents, closing at $7.7175. July soybeans gained 6 cents, ending at $16.93, with July soybean meal up $4.60 per ton, ending at $427.10. July wheat fell 35.25 cents, closing at $11.5475. June live cattle slipped $0.05, closing at $132.72. July crude oil declined $0.52, closing at $109.77 per barrel. The Dow gained 48 points, closing at 31,929, while the NASDAQ fell 271 points, closing at 11,264.
