MILK
Class III futures for July through October are now above $19, improving the outlook for milk prices. This certainly has been a surprise as it is spring flush. Although milk production is lower than a year ago, milk supply is sufficient for demand. There was much concern over the impact of avian flu on the industry. However, that did not happen, and the outlook has improved. There was testing done on ground beef from areas of higher dairy concentration. Fortunately, the results were negative, taking that off the table.
Two other tests will be taking place over time. FSIS is collecting muscle samples at FSIS-inspected slaughter facilities that APHIS will analyze for viral particles. The results will be posted when they become available. There will also be a ground beef cooking study that will use a virus surrogate cooked at different temperatures to determine its impact on the virus. The results will be posted when available. So far, there are no concerns over dairy products in the food industry.
AVERAGE CLASS III PRICES
| 3 Month: | $18.70 |
| 6 Month: | $19.03 |
| 9 Month: | $18.84 |
| 12 Month: | $18.56 |
CHEESE
Block price moved to the highest level since Oct. 20, 2023. Barrels moved to the highest price since March 29, 2023. That certainly changes the attitude of the industry. Buyers of dairy products for supplying clients are becoming increasingly concerned as prices increase. Some have not purchased much in advance due to not wanting to pay extra for storage and because prices generally remain reasonable during the spring flush. This may bring buyers into the market more aggressively.
BUTTER
Butter price has moved to the highest since Nov. 6, 2023, and may increase rapidly as greater concern over supply develops. This may bring buyers into the spot market more aggressively. It is early for this and may suggest strong prices over the next few months.
OUTSIDE MARKETS SUMMARY
July corn closed up 9 cents per bushel at $4.5975, July soybeans closed up 28.75 cents at $11.99 and July soybean meal closed up $15.90 per ton at $364.90. July Chicago wheat closed up 5 cents at $6.0425. June live cattle closed up $2.95 at $176.80. June crude oil is down $0.05 per barrel at $78.95. The Dow Jones Industrial Average is up 322 points at 38,226 with the NASDAQ up 235 points at 15,841.
