MILK
Milk futures have been moving lower for a little more than a week with nearby months seeing further losses today. One must wonder if milk futures might find some stability near current levels. There have been varying schedules for spring break for schools and colleges that have impacted fluid demand to some extent. All schools will be closed for a few days later this week for the Easter holiday moving more fluid milk to manufacturing. That will only be temporary with milk being handled without difficulty. There may be more milk available on the spot market at very reasonable prices for those facilities that are able to handle it. It will be interesting how the market will move over the next few months as milk production will increase seasonally as spring flush unfolds. The level of milk production during spring flush will determine the strength of milk prices for a period. Of course, demand will play a large role as well.
AVERAGE CLASS III PRICES
| 3 Month: | $18.34 |
| 6 Month: | $18.60 |
| 9 Month: | $18.96 |
| 12 Month: | $18.97 |
CHEESE
Even though the closest bid at the end of spot trading yesterday was about 7 cents lower, buyers were more aggressive today. Spot trading began with bids at the steady price and then increased from there. Buyers thought price was low enough to step up and purchase some supply. The same was not true for barrels with the low bid from yesterday being placed today. The sell-off has been swift and severe, but a rebound may not follow the same pattern. Prices generally do not rebound as quickly after a large price swing that we have seen both up and down during the month of March.
BUTTER
The weakness of butter moved price down near the bottom of the trading range that we have seen over the past two months. It has been an uneventful market leaving butter traders with limited opportunities to capture a large price movement. Current market fundamentals do not suggest a change in this pattern anytime soon.
OUTSIDE MARKETS SUMMARY
May corn declined 4.25 cents closing at 46.5350. May soybeans declined 3 cents closing at $15.19. May wheat declined 2 cents closing at $6.9150. April live cattle slipped $0.17 closing at $167.95. May crude oil gained 48 points at $80.90 per barrel. The Dow declined 199 points ending at 33,402 while the Nasdaq ended 63 points lower at 12,126 points.
.jpg)
