MILK:
After five consecutive days of decline, Class III futures were able to bounce today. However, that is a small consolation compared to the weakness seen over the past month. Traders decided to cover some short positions before the weekend in case further unexpected political news is released. The Wall Street Journal reported that Canada could face more tariffs, President Trump said Friday. "Canada has been ripping us off for years on tariffs for lumber and dairy products," Trump pledged reciprocal levies unless those are dropped. "We may do it as early as today, or we'll wait till Monday or Tuesday, but that's what we're going to do. We're going to charge the same thing. It's not fair." This will continue to provide uncertainty and instability in the market. It makes it impossible to anticipate the movement of the markets from one day to the next.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.74 |
| 6 Month: | $17.83 |
| 9 Month: | $18.02 |
| 12 Month: | $18.03 |
CHEESE:
For the week, blocks fell 15.25 cents with 41 loads traded. The weekly average price is $1.6380. Barrels fell 15 cents with 11 loads traded and a weekly average price of $1.7005. Dry whey declined 2 cents with six loads traded and a weekly average price of 49.80 cents. Manufacturers of blocks turned to more aggressive sellers to keep supply from building due to slower demand and the uncertainty of the impact of tariffs. Buyers are cautious with purchases as they are uncertain of demand.
BUTTER:
For the week, butter declined 3.50 cents with a weekly average of $2.2975 with 37 loads traded. Grade A nonfat dry milk declined 2.50 cents with 15 loads traded and a weekly average price of $1.1750. Class IV futures continued to show weakness with substantial declines again this week. It is uncertain whether butter has found support, but the same cannot be said for nonfat dry milk. This is the anchor on the market. The weakness of nonfat dry milk continues to offset any gains in butter.
OUTSIDE MARKETS SUMMARY:
May corn closed up 5.25 cents per bushel at $4.6925, May soybeans closed down 2.25 cents at $10.2500 and May soybean meal closed down $.50 per ton at $304.40. May Chicago wheat closed down 2.75 cents at $5.5125. April live cattle closed up $4.00 at $200.28. April crude oil is up $0.69 per barrel at $67.05. The Dow Jones Industrial Average is up 223 points at 42,803 with the NASDAQ is up 127 points at 18,196.
.jpg)
