MILK
It is reported that milk production continues to slowly improve in much of the country with the Mid-Atlantic states nearing spring flush levels. Bottling demand has been steady with spring break just around the corner for most schools. Spring break may put more milk on the spot market, which could reduce prices even further. There is no shortage of milk anywhere, and it is not expected to tighten anytime soon. The outlook for higher milk prices on the futures market will keep culling lower and barns full. Class III milk futures showed incredible strength in the face of the decline of cheese prices. Only the April and May contracts closed lower with double-digit gains in numerous other contracts. After futures were settled for the day, continued trading showed further strength developing with even April and May contracts moving into positive territory. Trading volume was moderate, making the close more impressive.
AVERAGE CLASS III PRICES
| 3 Month: | $18.69 |
| 6 Month: | $18.80 |
| 9 Month: | $19.06 |
| 12 Month: | $19.05 |
CHEESE
Cheese demand is mixed, varying across the country. Some ordering has increased from retail outlets. In general, manufacturing facilities have access to all the milk they need. Some cheese plants have increased their production schedules as more milk comes in from patrons. Cheese inventory has yet to increase but is anticipated to increase as spring progresses.
BUTTER
Cream is tightening from the lofty supply level it has been in for a time. Churns are showing no signs of slowing and continue to run on full schedules. Ice cream production is ramping up, which is reducing the amount of cream available on the spot market. No shortage of cream and/or tightness of butter supply is expected for quite a while.
OUTSIDE MARKETS SUMMARY
May corn gained 3.25 cents, closing at $6.5050. May soybeans gained 9.50 cents, closing at $14.7725, with May soybean meal up $0.30, closing at $458.20 per ton. May wheat gained 5 cents, ending at $7.0475. April live cattle gained $0.87, closing at $165.82. May crude oil. The Dow gained 323 points, closing at 32,718, while the NASDAQ gained 210 points, ending at 11,926.
