MILK:
It was another day of limited volatility but higher trading activity than on Monday. It will take larger price swings in underlying cash to create significant movement in milk futures. Traders have become accustomed to prices moving erratically and are not anxious to buy or sell milk futures based on the movement of underlying cash. A sufficient milk supply keeps market participants buying and selling as needed with little concern over supply tightness. The April contracts have finished trading, with May now the lead month. The May contract is nearly half-priced and will decline in volatility over the next two weeks. The April Federal Order class prices will be released tomorrow. The trade anticipates a Class III price of $17.45 and a Class IV price of $17.96.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.77 |
| 6 Month: | $17.99 |
| 9 Month: | $18.00 |
| 12 Month: | $17.98 |
CHEESE:
The block cheese price moved above the barrel price, which has not happened very often for quite some time. This may not indicate that the block cheese supply is tightening, but it is likely just business being done. Cheese production is increasing as milk production increases. Spot milk remains available below class, allowing plants to purchase extra at reduced prices to fill production schedules.
BUTTER:
The butter price declined to a multi-year low, reaching back to the lowest level since December 22, 2021. This compares to $2.9650 a year ago and $2.3525 on the same day in 2023. Buyers may step up to take advantage of the low price, but buying interest may be limited as there is little concern over supply.
OUTSIDE MARKETS SUMMARY:
July corn closed down 13.00 cents per bushel at $4.7025, July soybeans closed down 9.75 cents at $10.5275 and July soybean meal closed up $2.30 per ton at $298.20. July Chicago wheat closed down 5.50 cents at $5.2550. June live cattle closed up $0.60 at $210.20. June crude oil is down $1.63 per barrel at $60.42. The Dow Jones Industrial Average is up 300 points at 40,528, with the NASDAQ up 95 points at 17,461.
