MILK
Milk futures are in line with underlying cash and moving in relationship with it. Futures did not move substantially outside of the market correlation to cash. Traders have become more bullish but maintain a level of caution as underlying cash prices will fluctuate. Milk futures are promising as some Class III contracts are over $19 and some Class IV contracts are over $21.
The Global Dairy Trade auction took place today with the trade-weighted average increasing by 1.8% from the previous event. There were 19,231 metric tons sold. Anhydrous milk fat increased by 1.2% to $7,124 per metric ton or $3.23 per pound. Butter increased 2.1% to $6,593 per metric ton or $2.99 per pound. Buttermilk powder increased by 1.7% to $2,545 per metric ton or $1.15 per pound. Cheddar cheese price increased 8% to $4,257 per metric ton or $1.93 per pound. Lactose decreased by 1.3% to $739 per metric ton or $0.34 per pound. Mozzarella increased 2.3% to $3,844 per metric ton or $1.77 per pound. Skim milk powder increased 0.4% to $2,551 per metric ton or $1.16 per pound. Whole milk powder increased 2.4% to $3,350 per metric ton or $1.52 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $19.04 |
| 6 Month: | $19.14 |
| 9 Month: | $18.94 |
| 12 Month: | $18.74 |
CHEESE
Spot cheese prices provided little direction. The slight weakness does not indicate prices will fall much but buyers were not aggressive. Prices may reach a threshold at some point limiting upside potential for a time. The market does not trend in one direction without price fluctuation.
BUTTER
Churning is active and supply is available for current demand with some moving to inventory. Inventory in March was 2% above a year ago with minimal increase and not a concern for the industry. Manufacturers would like to increase inventory further to provide a greater cushion in supply.
OUTSIDE MARKETS SUMMARY
July corn closed down 2 cents per bushel at $4.67, July soybeans closed down 2.25 cents at $12.4650 and July soybean meal closed down $4.40 per ton at $383.20. July Chicago wheat closed down 6 cents at $6.4275. June live cattle closed up $0.65 at $177.63. June crude oil is down $0.10 per barrel at $78.38. The Dow Jones Industrial Average is up 32 points at 38,884 with the NASDAQ down 17 points at 16,333.
