MILK
Milk futures took a hit again today in both Class III and Class IV categories. Although Class III contracts were significantly lower, they were not under quite as much pressure as yesterday. The magnitude of the recent decline of closer month milk futures should find some rebound as futures may be overdone to the downside. However, any bounce may be short-lived unless there is support from underlying cash. It was a bit surprising Class IV futures posted some double-digit losses due to underlying butter and nonfat dry milk prices remaining steady today. Lower prices should stimulate greater buying interest as buyers want to purchase what they can for aging programs and to prepare for later demand. Ongoing demand for fresh cheese is being filled without difficulty.
AVERAGE CLASS III PRICES
| 3 Month: | $17.49 |
| 6 Month: | $18.07 |
| 9 Month: | $18.49 |
| 12 Month: | $18.57 |
CHEESE
USDA reported American cheese inventory grew by 15.3 million pounds in March compared to February totaling 832.3 million pounds. This is the first inventory growth this year. This puts American cheese inventory at nearly the same level as March 2022. Swiss cheese inventory totaled 21.7 million pounds, down 2.1 million pounds from a year ago. Other cheese increased 253,000 pounds totaling 605.7 million pounds. Total cheese inventory increased 13.5 million pounds totaling 1.460 billion pounds. Swiss cheese inventory is 6% below a year ago, other cheese is 1% below, and total cheese is in line with a year ago.
BUTTER
Butter inventory decreased 2.3 million pounds during March totaling 292.7 million pounds. Stocks are just 3% below a year ago. This is the first decrease since November. It was a surprise to see inventory decrease at this time of year. Butter inventory usually increases. Churning has been active keeping manufacturers' butter inventory higher than a year ago.
OUTSIDE MARKETS SUMMARY
May corn declined 4.75 cents closing at $6.4650. May soybeans fell 20 cents closing at $14.4525 with May soybean meal down $4.70 per ton closing at $434.80. May wheat declined 4.75 cents ending at $6.3875. Live cattle remained unchanged at $174.30. June crude oil declined $1.69 closing at $77.07 per barrel. The Dow fell 345 points closing at 33,531 while the Nasdaq fell 238 points closing at 11,799.
