MILK:
Traders remain reluctant to push milk futures higher despite the strength of underlying cash prices. The anticipation is that cheese prices will have limited upside potential and are waiting for the buying interest to run out of steam. Cheese production is increasing as more milk is finding its way to the vat. Cheese is available for demand, leaving much of the buying interest for potential demand later this year. The increasing cheese prices as bringing more buyers into the market, adding increased buyer interest as they want to purchase supplies before prices increase further. There is no shortage of milk with spot milk available below class. May Class III futures moved above $18 Tuesday as traders became more active with nearly 1,000 contracts traded. Most of the activity was confined to contracts through September. Class IV futures showed most of the activity and price movement in 2026 contracts.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.53 |
| 6 Month: | $17.85 |
| 9 Month: | $17.96 |
| 12 Month: | $17.99 |
CHEESE:
The block cheese price reached the highest level since Feb. 26 and has increased for eight consecutive days. Barrel cheese has moved to the highest level since Oct. 30, 2024. It is anticipated that tariffs will not have much impact on demand, but both domestic and international demand will improve as the year progresses. Traders remain cautious over the upside price potential.
BUTTER:
Butter is lagging as fundamentals remain more bearish. Exports are strong, but domestic supplies are higher than a year ago and increasing. Butter output remains strong with most plants operating at full capacity. The price continues in the sideways pattern with little reason to break out to the upside.
OUTSIDE MARKETS SUMMARY:
May corn closed down 3.75 cents per bushel at $4.8125, May soybeans closed down 5.75 cents at $10.3600 and May soybean meal closed down $2.90 per ton at $294.20. May Chicago wheat closed down 5.50 cents at $5.4200. June live cattle closed up $0.73 at $199.80. May crude oil is up $0.02 per barrel at $61.55. The Dow Jones Industrial Average is down 156 points at 40,369 with the NASDAQ down 8 points at 16,823.
