MILK:
There has been no change in the market even though it seemed a bit more promising a few days ago. Milk supply is plentiful, leaving buyers of dairy products unconcerned over supply. Buyers are unwilling to buy product much ahead of time due to increased storage costs. They would rather purchase on an as-needed basis for as long as possible. Milk production remains strong as spring flush continues to unfold. Spring flush should be nearing its peak soon, but milk production may hold strong as long as the weather remains good. Dairy cattle slaughter in April totaled 243,600 head. This was a decline of 62,600 head from slaughter in March, but an increase of 5,800 head from April 2022. Slaughter generally decreases significantly from March to April, making this not unusual. However, the report showed that dairy cattle slaughter has not increased due to low milk prices. This may be delayed more than it was during the low prices of 2021, even though cull cow prices are higher than they were back then. Many farmers are in a better financial position due to the higher milk prices last year.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.31 |
| 6 Month: | $17.31 |
| 9 Month: | $17.76 |
| 12 Month: | $17.85 |
CHEESE:
Cheese prices have limited upside potential. Any gains are short-lived. It was hoped buyers would begin to be more aggressive purchasing cheese at current low prices, but such is not the case, at least not yet. Buyers are not interested in building inventory at this time of year. Sellers would like to keep inventory from building and continue to offer supply to the spot market.
BUTTER:
Price retreated from the top end of the range, remaining fully entrenched in a sideways pattern with no end in sight. Churns are active with cream supply sufficient for demand. Ice cream production is increasing, but at a slower pace than usual for this time of year due to cooler weather and a slower increase in demand. Current demand for butter is meeting seasonal expectations.
OUTSIDE MARKETS SUMMARY:
July corn closed up 3.50 cents per bushel at $5.9075, July soybeans closed down 0.50 cent at $13.24 and July soybean meal closed down $5.00 per ton at $397.20. July Chicago wheat closed down 2.00 cents at $6.0425. August live cattle closed up $0.65 at $164.78. July crude oil is down $2.51 per barrel at $71.83. The Dow Jones Industrial Average is down 35 points at 32,765 with the NASDAQ is up 214 points at 12,698.
