MILK:
Milk futures could not uncover buying interest, though cash prices increased in all categories. Cheese prices increased for the fourth consecutive day, leaving traders wondering just how much more upside is possible. The USDA estimates milk production will increase as they raised their estimate for milk production this year to 226.9 billion pounds, up 700 million pounds from their March estimate. This change was due to increasing cow numbers and the potential for milk production to exceed the previous year. They left production unchanged for 2024 at 225.9 billion pounds and should be the final number for the year. The May report will show initial estimates for 2026. Exports on a fat basis were raised by 100 million pounds, while exports on a skim solids basis were reduced by 2.9 billion pounds. Domestic use on a skim solid basis was raised by 3.0 billion pounds. The average Class III price was reduced by $0.35 to $17.60. The Class IV price was reduced by $0.60 to $18.20. The All-milk price is estimated to average $21.10, down $0.50 from the previous month.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.29 |
| 6 Month: | $17.73 |
| 9 Month: | $17.83 |
| 12 Month: | $17.80 |
CHEESE:
The USDA reduced the cheese price in the World Agricultural Supply and Demand report by 2 cents to an average of $1.79 per pound. This is about 7.50 cents per pound below 2024. Dry whey was lowered by 1.5 cents to an average of 51 cents per pound. This is 2 cents above 2024.
BUTTER:
The average butter price was $2.4450 on the report, a decrease of 7 cents from the March estimate. This is about 44.50 cents below 2024. Growing inventory and abundant butterfat supplies are expected to limit the upside price potential. The nonfat dry milk price was reduced by 3.50 cents to an average of $1.22 per pound or 2 cents below 2024.
OUTSIDE MARKETS SUMMARY:
May corn closed up 9.00 cents per bushel at $4.8300, May soybeans closed up 16.25 cents at $10.2900 and May soybean meal closed up $3.40 per ton at $297.90. May Chicago wheat closed down 4.25 cents at $5.3800. June live cattle closed down $3.18 at $195.20. May crude oil is down $2.28 per barrel at $60.07. The Dow Jones Industrial Average is down 1,015 points at 39,594 with the NASDAQ down 738 points at 16,387.
