MILK:
There has been no change in the fundamental news over the weekend, with the spot markets having the sole impact on the futures market. Milk production is following a seasonal direction as the spring flush continues. The extent of the increase and the duration cannot be predicted. Some believe that the spring flush will last through May, while others think it will continue into June. The warmer weather may result in the increase in milk production running its course sooner. Milk futures are not showing any significant price changes for the rest of the year. The impact of bird flu on dairy cattle and the potential for reduced milk output has become old news. Some updates are released at times, but farmers seem to have adjusted to it, and cows do not seem to be reinfected with it once they have overcome it.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.69 |
| 6 Month: | $17.85 |
| 9 Month: | $17.94 |
| 12 Month: | $17.94 |
CHEESE:
Buyers and sellers remained on the sidelines today with no interest in doing business. The buyers see sufficient supply for demand and do not need to be aggressive buyers. The sellers continue to move supplies to the market to reduce the increase in inventory at the plant level. This will limit the upside price potential but will also provide support.
BUTTER:
Spot butter may decline to the previous low of $2.26 before turning higher. The positive aspect is that retail demand is stronger due to the lower prices. International demand is strong due to the large discount it has on international prices. Increasing demand should keep the inventory from building at the plant level.
OUTSIDE MARKETS SUMMARY:
July corn closed down 2.25 cents per bushel at $4.8325, July soybeans closed up 3.25 cents at $10.6250 and July soybean meal closed down $2.60 per ton at $295.90. July Chicago wheat closed down 14.00 cents at $5.3100. June live cattle closed up $1.35 at $209.60. June crude oil is down $0.97 per barrel at $62.05. The Dow Jones Industrial Average is up 114 points at 40,228, with the NASDAQ down 17 points at 17,366.
