Tuesday Closing Dairy Market Update - GDT Trade-Weighted Average Remains Unchanged

MILK:

The continued weakness of spot dairy and milk futures prices is very concerning. Low prices should cure lower prices, but the declining prices of the past nearly two months have not spurred aggressive buying interest. There is sufficient milk for demand. Spot milk is available, as prices are as much as $2.50 below class. Some of that weakness has to do with educational institutions moving through their periods of spring break. Even though there has been much concern about the impact of bird flu on milk production, it has not tightened supply. It has been devastating to the farms that have been affected by bird flu and continues to remain a concern for the industry. The Global Dairy Trade auction took place on Tuesday with the average price remaining steady with the previous event at $4,245 metric tons. There were 19,540 metric tons sold. Anhydrous milk fat declined 1.8% to $6,561 per metric ton, or $2.98 per pound. Butter increased 1.1% to $7,667 per metric ton, or $3.48 per pound. Cheddar cheese increased 1.0% to $4,976 per metric ton, or $2.26 per pound. Lactose increased by 0.5% to $1,165 per metric ton, or $0.53 per pound. Mozzarella increased 5.1% to $4,704 per metric ton, or $2.13 per pound. Skim milk powder decreased by 0.4% to $2,729 per metric ton, or $1.24 per pound. Whole milk powder increased by 0.2% to $4,052 per metric ton, or $1.84 per pound.

AVERAGE CLASS III PRICES:

3 Month:	$17.56
6 Month:	$17.61
9 Month:	$17.87
12 Month:	$17.83

CHEESE:

Cheese prices moving back to the levels last seen in April 2024 is difficult to comprehend. It seems the lower prices would have increased buying interest, but such has not been the case. Buyers are looking at current demand and the potential for demand, and they are content with purchasing on an as-needed basis.

BUTTER:

It is possible the butter price could revisit the recent lows. Each time the price rallies, it moves back to a new low. Butter is bearish in light of the higher inventory than a year ago. However, international demand has been strong and rightly so. The world butter price, according to the Global Dairy Trade auction, is $1.1850 per pound higher than the U.S. price, making it very attractive to international buyers.

OUTSIDE MARKETS SUMMARY:

May corn closed down 2.25 cents per bushel at $4.5875, May soybeans closed down 2.75 cents at $10.1275 and May soybean meal closed down $4.40 per ton at $299.90. May Chicago wheat closed down 3.50 cents at $5.6500. April live cattle closed up $0.35 at $205.38. April crude oil is down $0.87 per barrel at $66.71. The Dow Jones Industrial Average is down 260 points at 41,583, with the NASDAQ down 305 points at 17,504.