Wednesday Closing Dairy Market Update - April Class III Price is $18.52

MILK:

Milk futures had a much-deserved increase in prices after suffering substantial losses over the past weeks. Class IV futures have been performing better than Class III and did so again today. Strength in all categories of spot trading provided support to the market. Traders remain cautious as price increases have been short-lived. There is not much to be said about the milk market as fundamentals are similar to what they have been. Production continues to slowly increase, leaving sufficient supply for bottling and manufacturing demand. USDA announced the April Federal Order class prices today. Class II price is $19.20, down $0.32 from March. The Class III price is $18.52, up $0.42 from the previous month. The Class IV price is $17.97, down $0.43 from March. One year ago, the Class II price was $25.71; Class III price was $24.42; and the Class IV price was $25.31.

AVERAGE CLASS III PRICES:

3 Month:	$17.23
6 Month:	$18.13
9 Month:	$18.44
12 Month:	$18.46

CHEESE:

Overall demand has been good, but there are some reports that demand is mixed. Foodservice outlets are indicating there is some impact being felt from slowing traffic or what is being purchased as inflation impacts consumers. Spot milk prices continue to remain from $4.00 to as much as $11.00 below class with offers of spot milk increasing. Spring flush will not reach its peak for a few weeks which could impact spot milk prices even further.

BUTTER:

Price is pushing to the top end of the range and could break above it as buyers may be turning a little more aggressive. The price is not expected to run away to the upside as butter production remains strong. If price breaks out of the range as trends higher, it may bring more buyers in the daily spot market in order to purchase supply before the price moves higher.

OUTSIDE MARKETS SUMMARY:

July corn closed up 8.50 cents per bushel at $5.885, July soybeans closed up 6.75 cents at $14.175 and July soybean meal closed down $3.00 per ton at $424.90. July Chicago wheat closed up 30.50 cents at $6.3975. June live cattle closed down $1.25 at $161.65. June crude oil is down 3.06 per barrel at $68.60. The Dow declined 270 points closing at 33,414 with the Nasdaq down 55 points closing at 12,025.