MILK
Class III milk futures were lower for the week with Class IV futures steady to higher. Fundamentals are not providing support to prices. Underlying spot prices continue to chop around as buyers and sellers accomplish business. Traders continue to hold a bearish attitude and the market will need to prove itself before traders will become aggressive buyers. USDA released the March Agricultural Prices report showing average prices for the month. These prices are used in the calculation of income over feed for the Dairy Margin Coverage program. The only price not on the report is the average soybean meal price which is calculated by FSA and may be released later today or on Monday. The average corn price for March was $6.67, down $0.13 from February. The average premium/supreme hay price was $324.00 per ton, down $10.00 per ton from February. The All-milk price was $21.10, down $0.50 from February. The average soybean meal price is missing from the equation. Until that price is released, we are not certain of the income over feed price. Other prices to take note of are the alfalfa hay price for March was $267.00 per ton, up $1.00 from February and the average soybean price was $14.90, down $0.20 per bushel from February.
AVERAGE CLASS III PRICES
| 3 Month: | $17.66 |
| 6 Month: | $18.15 |
| 9 Month: | $18.53 |
| 12 Month: | $18.57 |
CHEESE
For the week, block cheese declined 6.25 cents with 21 loads traded. Barrel cheese gained 3.75 cents with 42 loads traded. Dry whey price declined a penny with 43 loads traded. It has been a choppy week, but the result did not provide any support to the dairy complex. Buyers of cheese are not concerned over supply and do not need to outbid each other to gain ownership of cheese. Current milk production levels keep sufficient milk supply available for bottling and manufacturing.
BUTTER
For the week, butter declined 4.75 cents with only four loads traded. Grade A nonfat dry milk increased a penny with only two loads traded. This kept the price in its sideways range. Buyers and sellers are comfortable at the current level doing business mostly through regular channels in the country.
OUTSIDE MARKETS SUMMARY
July corn closed up 3.50 cents per bushel at $5.85, July soybeans closed up 15.50 cents at $14.1925 and July soybean meal closed up $5.00 per ton at $4.324. July Chicago wheat closed up 4.50 cents at $6.3375. June live cattle closed up $0.28 at $165.48. June crude oil is up 1.95 per barrel at $76.71. The Dow gained 272 points closing at 34,098 while the Nasdaq gained 84 points closing at 12,227.
