MILK
Class III milk futures closed with greater gains than Tuesday. Block cheese has declined 7.25 cents over the past two days while barrels have declined 5 cents. Over the past two days, the May contract has increased 55 cents with other contracts posting strong gains as well. Traders seem to be anticipating a repeat of the price strength seen in March and are either liquidating short positions or buying into the market in anticipation of strength. South Dairy Trade reports showed weakness of cheese prices for both Argentina and Uruguay. Dairy products moving through ports in Argentina during the second half of February showed 5,982.44 tons moving to 15 destinations at an average price of $4,040.96 per ton. Whole milk powder increased 0.7% from the previous period to $3,793.79 per ton or $1.72 per pound. Skim milk powder decreased 0.2% to $3,583.73 per ton or $1.63 per pound. Semi-hard cheese price decreased 3.8% to $4.450.06 per ton or $2.20 per pound. Hard cheese increased 1.0% to $6,268.77 per ton or $2.85 per pound. Butter decreased 1.6% to $4,750.80 per ton or $2.16 per pound. Dairy products moving through port in Uruguay during the second half of March totaled 7,526.67 tons to 21 destinations at an average price of $3,866.26 per ton. Whole milk powder increased 3.9% or $3,753.40 per ton or $1.70 per pound. Skim milk powder decreased 8.3% to $3,222.96 per ton or $1.46 per pound. Semi-hard cheese decreased 2.7% to $4,705.69 per ton or $2.14 per pound. Hard cheese decreased 5.5% to $6,013.48 per ton or $2.73 per pound. Butter increased 1.8% to $5,399.64 per ton or $2.45 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $18.43 |
| 6 Month: | $18.83 |
| 9 Month: | $19.06 |
| 12 Month: | $18.98 |
CHEESE
The sellers of cheese continue to bring it to the spot market even though prices have been declining. Buyers have been able to pick up quite a bit of product recently as physical trading activity increased. It seems traders have been friendly to the market due to the increase in loads traded rather than what the price has been doing. Current cheese production has been sufficient for demand with increased milk being made available due to spring flush.
BUTTER
Price continues to remain within a range and likely will remain that way for quite some time. Demand is being met with inventory increasing. This will keep the upside price potential limited. Price has been in a sideways range since the end of 2022.
OUTSIDE MARKETS SUMMARY
May corn gained 5 cents, ending at $6.56. May soybeans gained 7 cents, closing at $15.0425, with May soybean meal up $2.20 per ton, closing at $460.20. May wheat gained 5.50 cents, closing at $6.7950. April live cattle gained $1.97, ending at $174.27. May crude oil gained $1.73, ending at $83.26 per barrel. The Dow slipped 38 points, closing at 33,647, while the Nasdaq declined 103 points, closing at 11,929.
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