MILK
Milk futures showed some surprising strength even though there was limited price movement of underlying cash. Cull cow prices have increased in some areas and are debatable whether that will increase interest in culling more heavily. Most of the lower-end cows have likely been culled with current herds about where farmers want them to be. Replacements are tight and higher priced. Cows are being added to the herds either internally or by purchasing cows from herds that are being liquidated. This will make growth slower. USDA released the April Agricultural Prices report today which showed an increase in all average prices used in the calculation of income over feed. The average corn price for April was $7.08, an increase of $0.52 from March. This compares to $5.31 for April 2021. The average price for premium/supreme hay was $271.00 per ton, up $2.00 from March and up $60.00 per ton from a year ago. The All-milk price was $27.10 per cwt, an increase of $1.20 from March and $8.80 per cwt more than a year ago. As of the time of this writing, the Farm Service Agency has not yet updated the monthly average soybean meal price. I am not able to provide the income over feed price until this is updated. The May Federal Order class prices will be announced tomorrow and will show a record high Class III milk prices. .
AVERAGE CLASS III PRICES
| 3 Month: | $24.56 |
| 6 Month: | $24.27 |
| 9 Month: | $23.60 |
| 12 Month: | $22.90 |
CHEESE
Block cheese price moved to the lowest level it has been since March 30. This certainly does not mean that the trend has turned lower, but it indicates there is sufficient cheese available for demand. Buyers are not concerned over supply and are not as aggressive during spot trading purchasing the weakness. Barrels have followed a similar pattern and are maintaining a premium over blocks.
BUTTER
Price seems content to hang around this level for the time being. Churning is relatively active as cream supply is not as abundant as it had been a month ago yet sufficient for demand. There has been good interest on the daily spot market as a good volume of loads have been trading. Supply and demand seem to be balanced.
OUTSIDE MARKETS SUMMARY
July corn fell 23.75 cents closing at $7.5350. July soybeans fell 49 cents closing at $16.8325 with July soybean meal down $17.50 closing at $414.80 per ton. July wheat fell 70 cents closing at $10.8750. June live cattle declined $1.65 closing at $130.52. July crude oil declined $0.40 per barrel ending at $114.67. The DOW declined 223 points ending at 32,990 while the NASDAQ declined 50 points closing at 12,081.
