MILK
July and later contracts in Class III futures moved to new contract highs today before slipping back. Traders focused on the strength of barrels rather than the weakness of blocks with nearby months posting double-digit gains. Class IV futures were moderately higher. The June Class III price is back above the June Class IV price again due to the buying interest of traders. Trading activity was moderate even though there was quite a bit of volatility. The South Dairy Trade report was released with 9998.7 tons of dairy products moving through ports in Argentina to 28 destinations during the period from March 16-30. Whole milk powder price increased 4.5% from the previous report totaling $3,632.91 per ton or $1.65 per pound. Skim milk powder increased 5.6% to $3,143.55 per ton or $1.43 per pound. Simi-hard cheese remained steady at $4,025.28 per ton or $1.83 per pound. Hard cheese decreased 2.4% to $6,126.78 per ton or $2.78 per pound. Butter jumped 8.0% to $5,041.97 per ton or $2.29 per pound. Buttermilk was steady at $2,500 per ton or $1.13 per pound.
Dairy production moving through port in Uruguay from April 16-30 totaled 7,742.44 tons to 20 destinations. The whole milk powder price increased by 0.6% to $3,522.69 per ton or $1.60 per pound. Skim milk powder fell 13.4% to $2,662.37 per ton or $1.21 per pound. The semi-hard cheese price change was not available with the price at $4,902.37 or $2.22 per pound. The hard cheese price jumped 10.8% to $6,410.81 per ton or $2.91 per pound. Butter increased 1.8% to $5,386.67 per ton or $2.44 per pound. Buttermilk was unchanged at $2228.40 per ton or $1.10 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $20.05 |
| 6 Month: | $19.94 |
| 9 Month: | $19.56 |
| 12 Month: | $19.28 |
CHEESE
The cheese market is a mystery with the divergency of block and barrel prices and the strength of barrels. The price movement does not make complete sense fundamentally, but buyers of barrels remain aggressive. The barrel supply is not as tight as the price indicates, but buyers are leapfrogging over each other to purchase supply.
BUTTER
Butter took a breather today but remains supported. Price could weaken into the weekend, but price weakness will bring buyers into the market. Churning is active but the cream supply is beginning to tighten as ice cream production and other Class II products increase.
OUTSIDE MARKETS SUMMARY
July corn closed down 5.50 cents per bushel at $4.5700, July soybeans closed up 2.75 cents at $12.1625 and July soybean meal closed down $4.00 per ton at $367.70. July Chicago wheat closed down 2.50 cents at $6.6325. June live cattle closed up $0.78 at $179.03. June crude oil is up $0.60 per barrel at $79.23. The Dow Jones Industrial Average is down 39 points at 39,869 with the NASDAQ down 44 points at 16,698.
