MILK
It was another one of those weird days in which cheese prices increased while Class III futures showed selling pressure for May and later contracts. One explanation could be that the market was overdone to the upside yesterday, but the magnitude of the movement of cheese would not suggest that. It seems traders still feel this rally will be short-lived with a good portion of what was gained yesterday, eliminated today in those contracts. April futures had substantial trading activity with over 1,300 contracts traded today and the most for a single contract in a long time. Buyers and sellers were battling it out with buyers gaining the upper hand with the gains kept to single digits. Milk production remains generally steady in many areas with some beginning to show signs of spring flush. Spot milk in the Midwest continues to be offered as much as $10.00 below class. This sets a new record for spot milk prices being that low since Christmas. That likely will not change before spring flush is in full swing which may keep that discount intact for another two months.
AVERAGE CLASS III PRICES
| 3 Month: | $18.33 |
| 6 Month: | $18.67 |
| 9 Month: | $18.98 |
| 12 Month: | $18.98 |
CHEESE
The strength in blocks has been as much of a surprise this week as the weakness was last week. The continued strength of barrels has been the bigger surprise. Barrel price has increased 35.75 cents over nine days of consecutive price increases. Buyers might be reaching a threshold but that will only be confirmed if weakness develops. Most manufacturing plants are running on full schedules to utilize the milk and meet demand.
BUTTER
There is little interest and little activity taking place on the daily spot market. No buyers or sellers showed up to do any business today. Buyers and sellers are taking care of most of their business through regular outlets in the country. The building of inventory is welcomed by the industry as no one wants to see the concern of last year repeated. Churning continues to remain active with many plants running seven days a week.
OUTSIDE MARKETS SUMMARY
May corn gained 5.75 cents closing at $6.2650. May soybeans declined 4.50 cents closing at $14.8925 with May soybean meal down $2.80 per ton closing at $478.40. May wheat gained 6.50 cents ending at $7.0275. April live cattle fell $1.50 closing at $161.55 April Crude oil fell $3.72 closing at $67.61 per barrel. The Dow declined 281 points ending at 31,875 while the Nasdaq gained 6 points closing at 11,434.
