MILK:
Futures trading activity was rather light today even though cheese prices declined. May milk showed the largest decline which is a bit surprising due to much of it already being priced. Later contracts showed no price changes. With buyers of cheese waiting for sellers to offer cheese lower and sellers continuing to lower prices to move supply, milk prices will not go higher. Bids continue to be placed lower at the beginning of spot trading indicating buyers are not interested in purchasing unless prices are lowered. This will not continue indefinitely, but this pattern has gripped the market and may remain that way for a time. Milk production continues to increase seasonally keeping cheese and butter production strong. There is no concern over supply keeping buyers of cheese complacent and purchasing supply for upcoming demand without having to be aggressive. Lower milk prices have not yet triggered heavy culling.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.11 |
| 6 Month: | $18.06 |
| 9 Month: | $18.39 |
| 12 Month: | $18.43 |
CHEESE:
For the week, block declined 6.75 cents with 34 loads traded. Barrels remained unchanged with 31 loads traded. Dry whey increased 0.50 cent with 54 loads traded. American cheese production totaled 499 million pounds in March according to the Dairy Products report released today. This was 3.2% above March 2022. Italian type cheese production was 1.5% below a year ago totaling 512 million pounds. Total cheese was 0.2% below a year ago totaling 1.23 billion pounds. Dry whey output totaled 78.0 million pounds, up 0.3% from a year ago.
BUTTER:
For the week, butter increased 9.50 cents with 14 loads traded. Grade A nonfat dry milk increased 3.25 cents with 13 loads traded. Butter production in March was 1.4% higher than March 2022 totaling 205 million pounds. Nonfat dry milk production totaled 200 million pounds, up 4.4% over a year earlier. Skim milk powder production totaled 36.0 million pounds, down 16.1% from a year ago. Regular hard ice cream production was 0.2% higher at 66.4 million gallons.
OUTSIDE MARKETS SUMMARY:
July corn closed up 7.50 cents per bushel at $5.9650, July soybeans closed up 18.75 cents at $14.3650 and July soybean meal closed up $1.50 per ton at $426.10. July Chicago wheat closed up 15.25 cents at $6.6025. June live cattle closed up $0.35 at $161.93. June crude oil is up $2.78 per barrel at $71.34. The Dow Jones Industrial Average was up 547 points at 33,674 and the NASDAQ was up 269 points at 12,235.
