MILK:
Milk futures did not move much despite cash prices increasing. Buyers will take advantage of a dip in prices but will limit their purchase being unwilling to chase the market higher. Milk production continues to increase as the spring flush continues and the weather becomes mild. There has been quite a bit of volatility in the equity markets today, but it did not impact milk futures. The dairy markets had already factored in a lot of bearish news. President Trump said he would add another 50% tariff on China if they do not rescind the 34% tariff they plan to put on U.S. goods tomorrow. China is a large importer of whey, and the increase in tariffs may affect our dairy exports to them. They are not as large an importer of other dairy products, but dairy exports to them have been increasing.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.91 |
| 6 Month: | $17.35 |
| 9 Month: | $17.55 |
| 12 Month: | $17.59 |
CHEESE:
Cheese prices are expected to remain in a range with buyers purchasing on weakness and sellers moving supply on price strength. Cheese supplies are sufficient, with production increasing due to increasing milk receipts. Inventory remains below a year ago but is sufficient for demand.
BUTTER:
The butter price is sufficient for demand and then some. Butter production in February was large as churns were running on full schedules. Inventory is above a year ago and has been increasing significantly. Buyers are content to wait for sellers to offer supply to the market as they see no need to be concerned over a tight supply.
OUTSIDE MARKETS SUMMARY:
May corn closed up 4.25 cents per bushel at $4.6450, May soybeans closed up 6.00 cents at $9.8300 and May soybean meal closed up $5.30 per ton at $288.40. May Chicago wheat closed up 7.50 cents at $5.3650. June live cattle closed down $4.03 at $194.18. May crude oil is down $0.98 per barrel at $61.01. The Dow Jones Industrial Average is down 349 points at 37,966 with the NASDAQ up 15 points at 15,603.
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