MILK
The average soybean meal price for April was released by the FSA on Thursday morning with an average price for the month of $457.25 per ton. This was down $27.15 from the March average. This results in an income-over-feed price of $5.84. Those who have chosen the $9.50 price level under the Dairy Margin Coverage program will see a payment of $3.66 per cwt who have not reached the 5-million-pound limit. The May Federal Order prices were released Thursday. The Class II price was $19.11, down $0.09 from April. This compares to a record high of $25.87 last year. The Class III price was $16.11, down $2.41 per cwt from April. This compares to a record price of $25.21 in May 2022. The Class IV price was $18.10, up $0.15 from April. This compares to $24.99 in May 2022. This is quite a bit of a difference, and those who can receive the full Dairy Margin Coverage payments to supplement their milk checks will not feel the full impact of these low prices. Milk futures were able to post mostly higher closes in response to stronger cash. However, traders remain cautious over the strength and duration of the current strength. Class III prices should have been significantly higher in reference to the movement of underlying cash.
AVERAGE CLASS III PRICES
| 3 Month: | $16.52 |
| 6 Month: | $17.52 |
| 9 Month: | $17.73 |
| 12 Month: | $17.78 |
CHEESE
There are reports that cheese inventory is moving briskly with demand picking up. That will not have an immediate impact on prices. Strong milk production and more milk moving to manufacturing due to schools being closed may keep pressure on the market. Buyers have yet to become more aggressive in purchasing for later demand. They do not want to carry excessive inventory for any longer than they need to, as storage costs are expensive.
BUTTER
So far, cream has been available to churns, but hotter weather and increased ice cream production will affect the availability of cream. Butter supplies are higher than a year ago, and that leaves buyers complacent over current supply as well as future supply. This has left the price in the sideways range for a record amount of time. Demand will need to improve to increase the interest of buyers in purchasing ahead for later demand.
OUTSIDE MARKETS SUMMARY
July corn closed down 1.50 cents per bushel at $5.9250, July soybeans closed up 29.75 cents at $13.2950 and July soybean meal closed up $8 per ton at $401.40. July Chicago wheat closed up 16.50 cents at $6.1075. August live cattle closed up $4.70 at $172.38. July crude oil is up $2.11 per barrel at $70.20. The Dow Jones Industrial Average is up 153 points at 33,062 with the NASDAQ up 166 points at 13,101.
