MILK:
June Class III futures closed at a new contract low at $15.86. The May contract is basically priced with Tuesday being the last day to trade the contract. The May Federal Order prices will be announced on Wednesday. There is no concern over the milk supply which leaves buyers unconcerned over the availability of dairy products as the weeks progress. It is spring flush and milk production is only up 0.3% from a year ago, but supply is more than the current market can handle. Demand is good but not as good as it should be. Manufacturing has not been able to increase inventory due to plants not being able to run at capacity of the facility but at the capacity of what the workforces allows. Milk output in some areas will begin to decline as temperatures increase. More milk will be available to manufacturers as schools close for the summer. Current low milk prices may result in more farms throwing in the towel and discontinue dairying. That may mean heavier culling, or it could just shift cows to another operation. Markets will be closed on Monday in observance of Memorial Day and will reopen Monday night at 5 p.m. Central time.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.21 |
| 6 Month: | $17.23 |
| 9 Month: | $17.71 |
| 12 Month: | $17.81 |
CHEESE:
For the week, blocks declined 5.75 cents with 22 loads traded. Barrels gained 2 cents with 29 loads traded. Dry whey gained a penny withy 36 loads traded. Blocks were strong for the first half of the week before falling over the past three days. It may take an extended period of time before supplies will tighten sufficiently and buyers will become more aggressive.
BUTTER:
Butter has been noneventful so far, this entire year. I have never seen a cash market remain entrenched in a sideways pattern for this length of time. There is no indication this will change anytime soon. For the week, butter declined 3 cents with three loads traded. Grade A nonfat dry milk increased 1.75 cents with 13 loads traded.
OUTSIDE MARKETS SUMMARY:
July corn closed up 13.25 cents per bushel at $6.0400, July soybeans closed up 13.25 cents at $13.3725 and July soybean meal closed up $5.00 per ton at $402.20. July Chicago wheat closed up 11.75 cents at $6.1600. August live cattle closed up $0.40 at $165.18. July crude oil is up $0.96 per barrel at $72.79. The Dow Jones Industrial Average is up 329 points at 33,093 while the NASDAQ is up 278 points at 12,976.
