MILK
There is a developing story about milk cows and production being impacted in some areas, but more information is being gathered. It is unclear what impact it could have on the market in the near term. For now, there is sufficient supply for demand with milk production improving due to spring flush.
The growth in milk production may not be as great as last year, but stronger production might continue for a longer time than usual, depending on the weather. For now, the industry does not think milk prices will have much upside in the near term.
AVERAGE CLASS III PRICES
| 3 Month: | $16.36 |
| 6 Month: | $17.10 |
| 9 Month: | $17.59 |
| 12 Month: | $17.71 |
CHEESE
Block cheese price could not hold the early gain during spot trading and fell into negative territory, keeping a lid on the futures market. Dry whey declines also added to the weight on futures. Barrels are in a stronger demand posture pushing back above blocks. This does not indicate cheese prices will trend higher but will keep the market choppy as it searches for solid support. Increasing milk production should keep cheese output sufficient for demand for the near term unless demand increases more than expected over the next few months.
BUTTER
Price may have reached resistance again at the top end of the range. Much of the butter for the Easter season has been shipped with some fill-in orders to be shipped over the next week. Buyers have been preparing for the season earlier and need not be overly aggressive now. The butter inventory remains below a year ago with exports running below a year ago. Domestic demand remains strong.
OUTSIDE MARKETS SUMMARY
May corn closed down 0.75 cent per bushel at $4.3600, May soybeans closed down 10.50 cents at $11.8775 and May soybean meal closed down $2.80 per ton at $331.90. May Chicago wheat closed up 14.25 cents at $5.4275. April live cattle closed up $1.33 at $188.58. April crude oil is up $1.77 per barrel at $82.81. The Dow Jones Industrial Average is up 76 points at 38,790 with the NASDAQ up 130 points at 16,103.
