MILK:
Milk prices may have a difficult time increasing as milk production outpaced last year, and cow numbers continue to increase. Milk production in March exceeded estimates with an increase of 1.0% in the top 24 states. Milk production per cow averaged 2,125 pounds, a gain of 4 pounds over March 2024. The number of milk cows totaled 8.96 million head. This was an increase of 9,000 head from February, and it was 72,000 more than a year ago. Milk production in the U.S. increased 0.9% from March 2024. Milk production per cow was 6 pounds higher than a year ago, totaling 2,111 pounds. Cow numbers increased by 8,000 head from February, totaling 9.404 million. This is 57,000 more than a year ago. There were 7 of the top 24 states showing production declines. Washington was down 4.3%; Florida declined 3.6%; Illinois declined 3.2%; California declined 2.1%; Arizona declined 0.7%; Oregon declined 0.5%; and Minnesota declined 0.1%. The largest increase took place in Texas with a gain of 9.4%. South Dakota gained 5.1%; Kansas increased 4.4%; Idaho gained 4.3%; and Georgia up 4.1%. The other states posted gains of less than 4.0%.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.71 |
| 6 Month: | $17.95 |
| 9 Month: | $18.06 |
| 12 Month: | $18.04 |
CHEESE:
The action today in spot cheese trading leaves traders guessing as to the strength of the market. It had been anticipated that prices would decline further, but that was not the case as lower prices increased buying interest. Unfilled bids remaining at the close suggest cheese prices might move higher on Wednesday.
BUTTER:
The fundamentals in the butter market are neutral. Increasing supply may limit the upside price potential. Lower prices keep buyers actively purchasing supplies as a hedge against higher prices. Buyers have not had to chase the market higher to purchase supplies. The cold storage report released on Thursday is expected to show a significant increase in supply.
OUTSIDE MARKETS SUMMARY:
May corn closed down 6.00 cents per bushel at $4.7575, May soybeans closed up 5.50 cents at $10.3500 and July soybean meal closed down $.80 per ton at $299.50. July Chicago wheat closed down 2.00 cents at $5.5025. June live cattle closed up $2.53 at $206.28. June crude oil is up $1.14 per barrel at $63.55. The Dow Jones Industrial Average is up 1,017 points at 39,187 with the NASDAQ up 430 points at 16,300.
