MILK
Milk futures continued their pattern of volatility with prices rebounding from Wednesday's losses. It seemed the markets reacted negatively to news that HPAI was found in milk samples. Today, that did not seem to be the focus with traders moving the market due to it being overdone to the downside relative to cash. Butter and cheese prices also remained steady, providing support to the market. We may need to buckle up as this may indicate a volatile year.
USDA released the March Livestock Slaughter report showing dairy cattle slaughter down from February and substantially lower than March 2023. March dairy cattle slaughter totaled 244,600 head, down 8,100 head from February. Slaughter was down 61,600 head from a year ago. Lower cow numbers and a tighter heifer supply are reducing slaughter.
AVERAGE CLASS III PRICES
| 3 Month: | $17.33 |
| 6 Month: | $18 |
| 9 Month: | $18.13 |
| 12 Month: | $18.11 |
CHEESE
Cheese prices remained unchanged, which was viewed as positive by traders. Blocks' early weakness dissipated as buyers turned aggressive to take advantage of the lower price. Spot milk prices are similar to last week with prices ranging from $1 to $3 lower. This is better than a year ago, indicating the milk supply is tighter but not too tight. The cold storage report was bullish on the market but it may take some time before it may provide further support to prices.
BUTTER
Butter price is supported but supply is sufficient to satisfy demand. Churning remains active, keeping supply available for demand as well as building some inventory. Butter is poised to move higher but the price may remain choppy for a period. Butter futures showed quite a bit of strength as traders anticipated stronger prices.
OUTSIDE MARKETS SUMMARY
July corn closed up 3.50 cents per bushel at $4.5200, July soybeans closed down 1.75 cents at $11.7975 and July soybean meal closed down $1.60 per ton at $347.60. July Chicago wheat closed up 7.50 cents at $6.2050. June live cattle closed up $2.55 at $177.80. June crude oil is up $0.76 per barrel at $83.57. The Dow Jones Industrial Average is down 375 points at 38,086 with the NASDAQ down 101 points at 15,612.
