MILK
Milk futures were under pressure with Class IV showing greater losses than Class III. Class IV futures were impacted by nonfat dry milk price moving near the low established in late January. If price moves below $1.1525, it moves back to the lowest level since March 23, 2021. Class III futures were lower but held up well due to only a minor decline of block cheese price. Traders found limited direction from spot trading with the recent milk production report having some negative influence on the market. The Global Dairy Trade auction took place today with the trade weighted average declining 2.6% and the third consecutive event posting a decline. Anhydrous milk fat declined 3.8% to $5,150 per metric ton or $2.34 per pound. Butter declined 3.0% to $4,748 per metric ton or $2.15 per pound. Cheddar cheese price fell 10.2% to $4,052 per metric ton or $1.89 per pound. Skim milk powder declined 3.5% to $3,648 per metric ton or $1.65 per pound. Whole milk powder declined 1.5% to $3,228 per metric ton or $1.46 per pound. Buttermilk and lactose were not offered at this event with no prices posted. It is unusual for all categories to post declines during the same event. I cannot remember the last time this took place.
AVERAGE CLASS III PRICES
| 3 Month: | $18.49 |
| 6 Month: | $18.72 |
| 9 Month: | $19.02 |
| 12 Month: | $19.03 |
CHEESE
Cheese has either reached a threshold or is holding before moving higher. The recent low bids in both blocks and barrels would suggest weakness, but anytime buyers may need to be aggressive to pick up supply. The weakness of cheese on the Global Dairy Trade auction today does not bode well for world prices which may impact domestic prices. With the world price at $1.84, the U. S. price about 14 cents per pound higher and may impact international demand.
BUTTER
The Global Dairy Trade auction butter price is about 25 cents below the U.S. price. Again, this may have a negative impact on export demand. So far, butter price has been holding in a range since the end of last year, but it will not remain there indefinitely.
OUTSIDE MARKETS SUMMARY
May corn declined 3 cents closing at $6.30. may soybeans fell 19 cents closing at $14.67 with May soybean meal down $2.10 closing at $460.60 per ton. May wheat fell 17.50 cents closing at $6.8325. April live cattle gained $0.40 ending at $162.42. April crude oil gained $1.69 closing at $69.33 per barrel. The Dow gained 316 points ending at 32,561 while the Nasdaq gained 185 points closing at 11,860.
