Monday Closing Dairy Market Update - Milk Futures Show Little Direction

MILK:

Cash prices and futures prices have not found any support due to the delay in export tariffs. Some other commodities have benefited from the delay. Dairy markets seem more focused on current demand and the uncertainty of future demand, as tariffs could be implemented at any time. However, the impact will be difficult to determine. Canada has had tariffs on U.S. butter of 298%, milk at 270% and cheese at 245% for some time. Canada is the largest importer of butterfat and has been for a while. So, is it going to make much difference or will buyers continue to pay higher prices to receive the product they need? That is difficult to determine and only time will tell. Currently, demand is lower than a year ago and keeps buyers less aggressive. Milk futures were mixed at the close of the day with moderate trading activity.

AVERAGE CLASS III PRICES:

3 Month:	$17.74
6 Month:	$17.82
9 Month:	$17.96
12 Month:	$17.99

CHEESE:

Cheese has not found a bottom but continues to bleed lower. Buyers remain unaggressive with price bounces stemming from immediate orders needing to be filled and not buying to increase ownership. Demand needs to improve significantly to get buyers to step up and take advantage of the low prices. The market will need to prove to itself that the trend has turned or buying will continue on an as-needed basis.

BUTTER:

The butter price remained steady, but that did not indicate that the selling pressure had subsided. The supply of butterfat remains abundant, with churns running at capacity. Until this slows down and demand improves, the upside price potential may be limited.

OUTSIDE MARKETS SUMMARY:

May corn closed up 2.75 cents per bushel at $4.7200, May soybeans closed down 11.00 cents at $10.1400 and May soybean meal closed down $2.10 per ton at $302.30. May Chicago wheat closed up 11.25 cents at $5.6250. April live cattle closed up $0.30 at $200.58. April crude oil is down $1.08 per barrel at $65.96. The Dow Jones Industrial Average is down 906 points at 41,889 with the NASDAQ is down 741 points at 17,456.