MILK
Class III futures were lower with some contracts showing double-digit losses. Steady cash prices triggered some profit taking on the concern prices may have reached a plateau. That will be seen over the next few days as traders assess continued demand at current prices. Milk production is holding and increasing as weather turns more spring-like. Spring flush is beginning to take place in some areas and will continue as the weeks progress. It is uncertain just how much milk output will increase over the next two months. We do know that we have more cow numbers than a year ago, which could keep milk production higher than last year. Class IV futures held mostly steady, as no direction was seen in underlying cash butter or nonfat dry milk.
AVERAGE CLASS III PRICES
| 3 Month: | $18.95 |
| 6 Month: | $18.93 |
| 9 Month: | $19.14 |
| 12 Month: | $19.12 |
CHEESE
Fresh cheese has been in demand with buyers outbidding each other to obtain available supply before prices moved higher. At some point, buyers will have sufficient on hand and will not need to be as aggressive, or price will be too high, moving buyers to the sidelines. Cheese production has not been able to meet demand as well as increasing inventory. Many plants are running at the capacity of what their workforce will allow but not at the capacity of the plant. This keeps spot milk in plentiful supply and at a significant discount to class.
BUTTER
Price remains solidly in the range it has been in since late December. With current supply and demand, it is not expected to change much. Some contracting is being done for third-quarter needs, which may limit price potential moving through the second half of the year. Bulk butter continues to be manufactured and frozen for storage.
OUTSIDE MARKETS SUMMARY
May corn gained 5.25 cents, closing at $6.4825. May soybeans gained 14 cents, ending at $14.42, with May soybean meal up $0.90 closing at $446. May wheat gained 9.50 cents, closing at $6.98. April live cattle increased $1.90, closing at $164.90. May crude oil jumped $3.55 per barrel, closing at $72.81. The Dow gained 195 points, closing at 32,432, while the NASDAQ declined 55 points, closing at 11,769.
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