MILK
Milk futures coasted during the day with traders only to see limited price movement making it difficult to scalp the market for a profit. There has been no solid news about the H5NI virus. Even if there was, it has not impacted the market so far. It is difficult to say whether consumers will slow down consumption of dairy products due to the uncertainty of the virus and its impact. For now, there is sufficient supply for demand with the market supported but not concerned. It might be possible that prices may remain in a range for a period and remain in the $18.00 range for the rest of the year. The current spot milk prices indicate less milk available than a year ago, but prices remain $1.00 to $3.00 below class. Tuesday is the last day to trade April dairy futures and options with the Federal Order class prices announced on Wednesday. USDA will release the March Agricultural Prices report on Wednesday.
AVERAGE CLASS III PRICES
| 3 Month: | $17.19 |
| 6 Month: | $17.87 |
| 9 Month: | $18.07 |
| 12 Month: | $18.04 |
CHEESE
No one wanted to do any business today, which does not necessarily indicate anything specific in the market. Buyers and sellers seem to be comfortable at the current price level. The positive aspect is that the recent strength has held and provides a higher level of support. The March inventory report showed supplies have not increased to a level above a year ago, which may be bullish if demand improves. For now, prices may chop around for a time.
BUTTER
The slight weakness of price today was just regular price movement. Price weakness should be met with buying interest and limited downside price potential. Both retail and food service demand are steady. As the year progresses, there is some interest in building supply as a hedge against higher cream prices.
OUTSIDE MARKETS SUMMARY
July corn closed down 0.75 cent per bushel at $4.4925, July soybeans closed up 4.75 cents at $11.8200 and July soybean meal closed up $9.60 per ton at $354.30. July Chicago wheat closed down 13.75 cents at $6.0850. June live cattle closed down $1.43 at $177.15. June crude oil is down $1.22 per barrel at $82.63. The Dow Jones Industrial Average is up 146 points at 38,386 with the NASDAQ up 55 points at 15,983.
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