MILK
Weather has been conducive for cow comfort allowing production to steadily increase in many areas. Spring flush is taking place and it will be interesting to see how much production will increase over the next month or so. The increase of year-over-year milk production is scaling back as seen in the March Milk Production report. However, increased cow numbers may provide the potential for milk production to improve through spring. Spot milk prices continue to follow along similar price levels as they have been so far this year with prices ranging from $4.00 to $11.00 under class. It is a new record for spot prices to remain this low for this long. The Global Dairy Trade auction is a barometer of world dairy product prices and has become an important part of the dairy industry. There have been two additional companies that will be selling skim milk powder on the auction platform. The Seattle-based co-op, Dari-gold, and the California dairy ingredient processor, Valley Milk. Dari-gold will be the seventh company to join the GDT platform as a seller with Valley Milk to be the eighth company to join.
AVERAGE CLASS III PRICES
| 3 Month: | $18.04 |
| 6 Month: | $18.56 |
| 9 Month: | $18.89 |
| 12 Month: | $18.87 |
CHEESE
It almost seems as if cheese prices are going to settle in a trading range for a period. Prices are trying to find the range that buyers and sellers will be comfortable with. Trading activity has increased recently primarily for barrels. So far this week, there have been 62 loads of barrels traded on the spot market with 22 loads of blocks. Last week, there were 70 loads of barrels traded. Current demand is being met with excess being purchased for upcoming demand. This may reduce some of the aggressive buying that is generally seen in the late summer to fall period.
BUTTER
Butter demand has softened a bit according to some reports. That is seasonal after the Easter holiday as buyers step back assessing ongoing regular demand needs. Some buyers have been actively establishing contracts for third-quarter needs. Increasing inventory is welcomed by the industry as the shortage scare of last year remains all too vivid. Higher inventory is not considered bearish. Supply and demand are balanced.
OUTSIDE MARKETS SUMMARY
May corn declined 8.50 cents closing at $6.6375. May soybeans declined 9 cents closing at $14.9750 with May soybean meal down $3.10 per ton closing at $451.30. May wheat declined 14 cents closing at $6.6775. April live cattle fell $1.32 ending at $174.10. June crude oil declined $1.87 closing at $77.29 per barrel. The Dow declined 110 points closing at 33,787 while the Nasdaq declined 98 points closing at 12,060.
