MILK:
Milk production is improving with some areas indicating spring flush is beginning. Milk output is not expected to overwhelm the market, but it will keep plants supplied and may increase inventories of dairy products. The market is anticipating this, as milk futures are having difficulty finding a bottom. The bounce in Class III futures on Wednesday was the reaction to the increase of blocks and dry whey. However, this may be short-lived, as the current supply and demand are tipped more to the supply side. At the present rate, the increase in demand will not keep up with the supply growth. Fluid milk demand is variable as educational institutions go through the spring break cycle. U.S. Secretary of Agriculture Brooke Rollins, on National Agriculture Day, announced that USDA is issuing up to $10 billion directly to agricultural producers through the Emergency Commodity Assistance Program (ECAP) for the 2024 crop year, according to a news release. The Farm Service Agency (FSA) will be sending out pre-filled applications to those who submitted crop reports in 2024.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.69 |
| 6 Month: | $17.76 |
| 9 Month: | $18.00 |
| 12 Month: | $17.95 |
CHEESE:
Cheese production is holding steady but may increase soon as milk receipts increase. Manufacturers have been attempting to limit the growth of plant inventories. However, there are indications that inventory is growing, as production is beginning to move above demand. Some plants are purchasing spot milk with prices ranging from $2.50 below class to $0.25 above class.
BUTTER:
There is little to get excited over in the butter market. Abundant cream supplies and inventory levels above a year ago are limiting the upside price potential. The longer the price remains low, and sellers offer supply to the market, the less will be the need for buyers to be aggressive later this year. The butter price one year ago was $2.82.
OUTSIDE MARKETS SUMMARY:
May corn closed up 3.25 cents per bushel at $4.6200, May soybeans closed down 4.50 cents at $10.0825 and May soybean meal closed down $2.20 per ton at $297.70. May Chicago wheat closed down 1.50 cents at $5.6350. June live cattle closed up $1.85 at $202.85. May crude oil is up $0.26 per barrel at $67.01. The Dow Jones Industrial Average is up 383 points at 41,965, with the NASDAQ up 247 points at 17,751.
