MILK
Milk futures rebounded Wednesday due to higher underlying cash prices. The greatest gains took place in 2022 Class III contracts with the highest increase in May. This is a bit unusual due to it being about half-priced already. It is open for price fluctuations but not as much as June or July would be. There might have been more sold positions in that contract that were liquidated due to the increase of barrel cheese price. Later contracts were higher but did not share in the exuberance that May showed. Class IV were higher in 2022 contracts but showed some significant losses in 2023 contacts. The Federal Order prices were announced Wednesday with gains in all categories. Class III price increased $0.95 to $25.71. Class III was announced at $24.42, up $1.97 from March. Class IV was announced at $25.31, up $0.49 from March.
AVERAGE CLASS III PRICES
| 3 Month: | $24.36 |
| 6 Month: | $23.87 |
| 9 Month: | $23.25 |
| 12 Month: | $22.53 |
CHEESE
Cheese manufacturers continue to deal with supply chain issues. This hinders the smooth movement of cheese to the marketplace. This has been an ongoing problem with no light at the end of the tunnel. This has resulted in the average spot milk price in the Midwest of $2 under class. This indicates there is sufficient supply for current demand. Demand continues to remain strong both domestically and internationally.
BUTTER
The volume of cream supply is increasing, while at the same time, ice cream production is increasing. This is keeping sufficient supply for demand for Class II manufacturers for the time being. Butter has been moved into inventory, but so far, inventory had not been able to gain on last year's level.
OUTSIDE MARKETS SUMMARY
May corn declined 2.25 cents, closing at $7.9850. May soybean gained 10.75 cents, closing at $16.6975, with May soybean meal down $8.10 per ton, ending at $428.30. May wheat jumped 32.25 cents, closing at $10.66. June live cattle declined $0.50, closing at $134.82. May crude oil jumped $5.40, closing at $107.81 per barre. The Dow jumped 932 points, closing at 34,061, while the NASDAQ jumped 401 points, closing at 12,065.
