MILK:
Class III milk futures showed some strong gains earlier in the day but settled off the highs. However, most contracts closed higher making one feel that maybe there is some life in milk prices. Trading volume in June and July contracts was heavy. June showed a volume of 1,832 contracts with July showing 1,590 contracts traded. It has been a long time since this volume has been seen in any contracts. Spot trading tomorrow will be key to market strength. South Dairy Trade numbers were released today with dairy products moving through ports in Argentina during April 1-15 totaling 4,832.50 tons. This was light movement over a two-week period. The average price was $4,257.67 per ton with product moving to 17 destinations. Whole milk powder was 0.5% higher than the previous period at $3,949.44 per ton or $1.79 per pound. Skim milk powder declined 0.3% to $3,675.49 per ton or $1.67 per pound. Semi-hard cheese declined 0.8% to $4,505.91 per ton or $2.05 per pound. Butter gained 0.4% to $4,516.02 per ton or $2.05 per pound. There were 6,995.45 tons shipped through ports in Uruguay from May 1-15 to 21 destinations at an average price of $3,826.99 per ton. Whole milk powder declined 5.3% to $3,709.29 per ton or $1.68 per pound Skim milk powder declined 12.5% to $3,253.56 per ton or $1.48 per pound. Semi-hard cheese gained 2.6% to $5,073.93 per ton or $2.30 per pound. Hard cheese increased 2.0% to $6,512.33 per ton or $2.96 per pound. Butter increased 1.0% to $5,217.61 per ton or $2.37 per pound.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.57 |
| 6 Month: | $17.49 |
| 9 Month: | $17.86 |
| 12 Month: | $17.91 |
CHEESE:
I would not say there has been a change in trend, but it seems like buyers have been a bit more aggressive in procuring cheese the past 3 days. Upside price potential may be limited due to the amount of cheese available and the willingness of sellers to move product rather than build inventory. Milk receipts remain higher than a year ago with spot milk continuing to sell at $4.00 to $11.00 under class. This gives plants access to extra milk at an attractive price.
BUTTER:
Price slipped back further in the range with no trading activity. Buyers continue to purchase without having to chase the market. USDA will release the April Cold Storage report tomorrow which could show inventory only slightly above a year ago.
OUTSIDE MARKETS SUMMARY:
July corn closed up 6.50 cents per bushel at $5.7750, July soybeans closed down 18.75 cents at $13.2250 and July soybean meal closed down $5.80 per ton at $406.40. July Chicago wheat closed up 16.00 cents at $6.2225. August live cattle closed down $1.03 at $162.58. July crude oil is up $0.86 per barrel at $72.91. The Dow Jones Industrial Average is down 231 points at 33,056 with the NASDAQ is down 161 points at 12,560.
