MILK
Traders did not have solid price direction, yet trading activity was large in the May contract with 1,610 contracts traded. The May Class III futures price is nearly $2.00 above the April price. The price is still low at $17.40, but it would certainly add some much-needed money to the milk checks. The trade is just beginning to price the May contract and much price movement may still take place. However, the price movement will get tighter as the next month unfolds.
The Global Dairy Trade auction took place earlier this week with the trade-weighted average increasing 0.1% from the previous event. The average price of the production sold was $3,590 per metric ton with 17,654 tons sold. Anhydrous milk fat price increased 1.7% to $7,062 per metric ton or $3.20 per pound. Butter price declined 1.4% to $6,546 per metric ton or $2.97 per pound. The cheddar cheese price dropped by 8.5% to $3,974 per metric ton or $1.80 per pound. Lactose declined 1.3% to $740 per metric ton or $0.34 per pound. Mozzarella cheese declined 3.8% to $3,755 per metric ton or $1.70 per pound. Skim milk powder remained steady with the previous event at $2,541 per metric ton or $1.15 per pound. Whole milk powder gained 0.4% to $3,369 per metric ton or $1.48 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $15.74 |
| 6 Month: | $17.63 |
| 9 Month: | $17.87 |
| 12 Month: | $18.97 |
CHEESE
The cheddar cheese price fell in the recent Global Dairy Trade index declined significantly on the event with a decline of 8.5% from the previous event. That would give the impression that world demand is lackluster. There are signs that further supply might decrease and prices might increase as the year progresses. This may increase the desire of buyers to step up a bit and purchase ahead for expected demand.
BUTTER
Buyers and sellers are comfortable with the current price range. It is too early to become very aggressive with purchases based on current supply. An increase in demand would provide higher prices as buyers would step up more to build inventory as a hedge against higher prices.
OUTSIDE MARKETS SUMMARY
May corn declined 3.50 cents closing at $4.2675. May soybeans fell 15.25 cents closing at $11.3425. May soybean meal declined $0.70 per ton closing at $338.00. May wheat closed 0.25 cent lower closing at $5.3675 per bushel. June live cattle gained $0.2750 closing at $181.17. May crude oil closed $0.04 per barrel higher at $82.73. The DOW slipped 2 points closing at 37,751 with the NASDAQ down 46 points closing at 15,637.
