MILK:
Dairy Market News reports that the spring flush has begun in earnest in the Midwest and Northern Plains. Some areas have seen milk production increase for the past few weeks. Milk component levels are beginning to decrease as milk production increases. Interestingly, milk futures appear to have established a bottom as increasing milk production provides more milk to the market. Some of this might be that some of the uncertainty prevalent in the market over the past two months has settled out with traders gaining more confidence. The feared impact of tariffs has not had much impact so far. Exports seem to be holding well and increasing for some varieties of dairy products. Farmers have until Monday to sign up for the Dairy Margin Coverage program at their local FSA office unless the deadline is extended. The deadline has been extended each year since the program began.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.85 |
| 6 Month: | $17.90 |
| 9 Month: | $18.12 |
| 12 Month: | $18.08 |
CHEESE:
Cheese production has been steady and sufficient to fill orders. Buyers have not been aggressively purchasing for demand later in the year. Lower demand has left the market in a bearish position, with buyers comfortable with current supplies and unconcerned over future supply. Spot milk prices have remained at a discount of $2.50 to class to $0.25 over class for the past few weeks. Prices may weaken as the spring flush continues.
BUTTER:
Retail butter demand is improving as low prices have made it more attractive, and consumers are purchasing ahead of the Easter season. International demand remains strong as the U.S. butter price is substantially below the world price. Food service demand is not as strong as was hoped it would be. High food prices have resulted in fewer people eating away from home.
OUTSIDE MARKETS SUMMARY:
May corn closed down 1.25 cents per bushel at $4.5000, May soybeans closed up 15.75 cents at $10.1675 and May soybean meal closed up $.90 per ton at $294.50. May Chicago wheat closed down 3.25 cents at $5.3200. June live cattle closed up $2.78 at $205.80. May crude oil is up $0.25 per barrel at $69.90. The Dow Jones Industrial Average is down 155 points at 42,300 with the NASDAQ down 95 points at 17,804.
