MILK:
It appeared as if block cheese price was going to finally close higher during the trading session, but continued offers for loads of cheese resulted in price closing unchanged. This increased the negative tone in Class III futures. Class IV futures were unchanged to lower as weakness of butter and nonfat dry milk pressured the market. South Dairy Trade results were released today showing price increases in Uruguay for dairy products moving through the ports from April 16-30. The average price was $4,006.83 per ton on 7,723.32 tons moving to 18 destinations. Whole milk powder increased 7.4% to $3,915.09 per ton or $1.78 per pound. Skim milk powder jumped 18.9% to $3,716.25 per ton to $1.69 per pound. Semi-hard cheese increased 5.1% to $4,946.98 per ton or $2.25 per pound. Hard cheese gained 1.8% to $6,385.78 per ton to $2.90 per pound. Butter declined 3.5% to $5,167.53 per ton or $2.35 per pound. Argentina had 7,628.67 tons moved to 22 destinations at an average price of $4,183.78 per ton from March 16-31. Whole milk powder declined 1.3% to $3,928.29 or $1.78 per pound. Skim milk powder gained 2.1% to $3,686.72 per ton or $1.67 per pound. Semi-hard cheese increased 3.1% to $4,540.10 per ton or $2.06 per pound. Hard cheese declined 4.0% to $6,178.46 per ton or $2.81 per pound. Butter declined 0.5% to $4,496.76 per ton or $2.04 per pound. Buttermilk remained unchanged at $2,650 per ton or $1.20 per pound.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.98 |
| 6 Month: | $17.96 |
| 9 Month: | $18.33 |
| 12 Month: | $18.38 |
CHEESE:
Sellers continue to bring cheese to the spot market. Cheese production is strong and supply plentiful. Even at current low prices, there seems to be no lack of willing sellers each day. Due to the willingness of these sellers, buyers place lower bids each time the spot market begins trading. Even with stronger buying of blocks today pushing price higher, the volume of offers was absorbed but price could not remain higher. Demand is good, but not good enough.
BUTTER:
Price remains entrenched in a range. Butter production is sufficient to satisfy demand as well as build inventory. Cream supply is sufficient but is expected to decrease as the weather becomes warmer. This will tighten supply and reduce butter output. Buyers are not concerned about the supply outlook at the present time. It is interesting that inventory is only 3% above a year ago and could move in line with last year's supply by summer.
OUTSIDE MARKETS SUMMARY:
July corn closed down 11.75 cents per bushel at $5.8475, July soybeans closed down 19.50 cents at $14.1425 and July soybean meal closed down $7.90 per ton at $419.00. July Chicago wheat closed down 10.50 cents at $6.4350. June live cattle closed up $1.50 at $163.93. June crude oil is up .38 per barrel at $73.54. The Dow Jones Industrial Average is down 57 points at 35,562 with the NASDAQ is down 77 points at 12,180.
