MILK
Milk futures had an incredible week with Class III futures ending with the June through October contracts moving above $19.00. This improves the outlook for milk prices immensely. The milk supply remains sufficient for demand with production increasing weekly. However, buyers have turned more aggressive as underlying cash prices increase. Those who had been waiting on the sidelines are stepping up to purchase before prices move much higher. This activity pushes prices even higher as some panic sets in. USDA will release the March Dairy Products report on Monday showing the amount of dairy products produced during the month.
AVERAGE CLASS III PRICES
| 3 Month: | $18.96 |
| 6 Month: | $19.10 |
| 9 Month: | $18.88 |
| 12 Month: | $18.68 |
CHEESE
For the week, blocks increased by 4 cents with two loads traded. Barrels increased 11.25 cents with nine loads traded. Dry whey increased by 1.25 cents with 11 loads traded. It was a strong week for all categories. Cheese supplies have not tightened with manufacturing remaining strong. However, there have been some reports that demand has been improving.
BUTTER
For the week, butter increased by 10.50 cents with 43 loads changing hands. Grade A nonfat dry milk increased by 2 cents 12 loads traded. Price is gaining momentum as buyers are trying to purchase ahead now that the price is not retracing to allow for purchases at lower prices. It is difficult to anticipate how high the price will move. The strength already at this time of year may indicate much higher prices will move.
OUTSIDE MARKETS SUMMARY
July corn closed up 0.25 cents per bushel at $4.60, July soybeans closed up 17.25 cents at $12.0175 and July soybean meal closed up $8.30 per ton at $372.20. July Chicago wheat closed up 519.25 cents at $6.43. June live cattle closed up $0.02 at $176.67. June crude oil is down $0.12 per barrel at $77.99. The Dow Jones Industrial Average is up 450 points at 38,676 with the NASDAQ up 315 points at 16,156.
