Friday Closing Dairy Market Update - Class III Futures End on a Sour Note

MILK:

Milk production is slowly increasing as the spring flush continues. There is sufficient milk for bottling and manufacturing as milk receipts are increasing. Cheese output is higher, adding to inventory. Inventory is below a year ago but is rising as production exceeds demand. Higher cow numbers have the potential to keep milk production above last year, despite lower production per cow. Lower milk prices may increase culling as farmers reduce expenses. Some cows that farmers have been holding may be culled to reduce expenses. USDA raised its estimate for milk production this year in the report on Thursday, which may have set a bearish tone for today.

AVERAGE CLASS III PRICES:

3 Month:	$17.09
6 Month:	$17.51
9 Month:	$17.69
12 Month:	$17.60

CHEESE:

For the week, blocks gained 10.50 cents with 27 loads traded. The weekly average price was $1.7130. Barrels gained 14.50 cents with 11 loads traded. The weekly average price was $1.7585. Dry whey declined 2.50 cents with 11 loads traded. The weekly average price was 48.30 per pound. Cheese prices have increased the entire week, breaking out of the pattern of the past few months that showed limited upside potential and gains confined to no more than three days.

BUTTER:

For the week, butter gained 5.25 cents with 30 loads traded. The weekly average price was $2.3205. Grade A nonfat dry milk increased by a penny with 11 loads traded. The weekly average price was $0.4830. The butter price increased each day this week, with the price moving back to the highest level since March 28. Butter inventory continues to increase as cream is readily available.

OUTSIDE MARKETS SUMMARY:

May corn closed up 7.25 cents per bushel at $4.9025, May soybeans closed up 13.75 cents at $10.4275 and May soybean meal closed up $1.70 per ton at $299.60. May Chicago wheat closed up 17.75 cents at $5.5575. June live cattle closed up $1.60 at $196.80. May crude oil is up $1.43 per barrel at $61.50. The Dow Jones Industrial Average is up 619 points at 40,213 with the NASDAQ up 337 points at 16,724.