MILK:
Milk futures continue to struggle as buyers remain unaggressive in the spot market. Loads are being purchased, but without much effort, as the sellers continue to offer products to the market. Milk futures closed lower in response to the overall weakness of the underlying cash. The positive aspect was that Class III milk futures came back with some contracts moving into positive territory after futures were settled for the day. However, the April through July contracts are below $18.00. Some areas indicate milk production is increasing seasonally, with spring flush not very far in the future. Dairy Market News reports that milk intakes in the Northeast are higher than anticipated. They also report that milk has become more difficult to move in some cases, likely depending on educational institutions going on spring break. Bottlers are having no difficulty obtaining the milk they need for fluid demand.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.74 |
| 6 Month: | $17.80 |
| 9 Month: | $17.96 |
| 12 Month: | $17.97 |
CHEESE:
Cheese prices have yet to find stability. One has to wonder how low prices will go. Prices were lower than this last year but that provides little consolation. Buyers of cheese see no need to be aggressive as the supply is sufficient for demand even though inventory is lower than a year ago. There are reports that there has been a slowing of demand primarily in the food service industry. Spot milk prices suggest there is sufficient available for cheese production with spot milk prices running $1.50 under class up to even with class.
BUTTER:
Many butter manufacturers indicate they are running at capacity and are not able to handle any more cream. That leaves more cream available to the market with loads being difficult to move in some cases. Demand for bulk butter is relatively flat in most cases.
OUTSIDE MARKETS SUMMARY:
May corn closed up 8.25 cents per bushel at $4.6400, May soybeans closed up 15.50 cents at $10.2725 and May soybean meal closed up $5.10 per ton at $304.90. May Chicago wheat closed up 5.75 cents at $5.5400. April live cattle closed down $0.28 at $196.28. April crude oil is up $0.05 per barrel at $66.36. The Dow Jones Industrial Average is down 428 points at 42,751 with the NASDAQ down 483 points at 18,069.
