MILK
Class III milk futures came to life with strong gains in nearby May and June contracts. Very little impact was seen in later months. Class IV futures were basically unchanged as the gain in butter price was offset by the decline of nonfat dry milk. South Dairy Trade prices were released earlier this week. Dairy products moved through ports in Argentina during the period from March 1 through March 15 totaled 6,925.07 tons at an average price of $4,252.58 per ton to 17 destinations. Whole milk powder increased 5.0% from the previous report to $3,982.14 per ton or $1.81 per pound. Skim milk powder increased 0.8% to $3,610.70 per ton or $1.64 per pound. Semi-hard cheese declined 1.0% to $4,404.27 per ton or $2.00 per pound. Hard cheese gained 2.6% to $6,434.46 per ton or $2.92 per pound. Butter declined 4.8% to $4,520.72 per ton or $2.05 per pound. Dairy products moving through Uruguay from April 1st through April 15th totaled 7,681.63 tons at an average price of $3,685.27 per metric ton to 15 destinations. Whole milk powder declined 2.9% to $3,643.83 per ton or $1.65 per pound. Skim milk powder declined 3.0% to $3,124.87 per ton or $1.42 per pound. Semi-hard cheese was unchanged from the last report at $4,707.56 per tone or $2.14 per pound. Hard cheese gained 4.4% to $6,275.27 per ton or $2.85 per pound. Butter slipped 0.9% to $5,352.74 per ton or $2.43 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $17.66 |
| 6 Month: | $18.15 |
| 9 Month: | $18.53 |
| 12 Month: | $18.57 |
CHEESE
Demand from food service is reported as strong with retail demand steady. There are some indications of strong demand for inventoried supply. Stocks did rise in March, but only by 15.3 million pounds for American cheese. This was the first increase this year, putting inventory at nearly the same level as a year ago. Without inventory growing over the past year, it could begin to support the market if demand increases or production decreases over the next months.
BUTTER
Butter production has not slowed down any at the current time. Cream supplies have declined but there remains sufficient available for steady butter production. Retail demand is steady. Inventory is only 3% higher than a year ago, leaving buyers watchful over supply over the next few months. Buyers have been purchasing ahead to avoid any potential of supply tightness that could develop.
OUTSIDE MARKETS SUMMARY
July corn closed down 19.50 cents per bushel at $5.815, July soybeans closed down 11.00 cents at $14.0375 and July soybean meal closed steady at $4.274. July Chicago wheat closed down 12.75 cents at $6.2925. June live cattle closed up $0.63 at $165.20. June crude oil is up $0.46 per barrel at $74.76. The Dow gained 524 points closing at 33,8256 while the Nasdaq gained 288 points closing at 12,142.
