MILK:
Class III milk futures found little support from spot prices as the strength of cheese was offset by the weakness of dry whey. Tariffs of 104% were put on China at midnight, with China retaliating by raising tariffs on the U.S. to 84% this morning. This was followed by Trump imposing tariffs on China of 125% immediately. This kept the stock market under pressure with losses of nearly 1,000 points. President Trump later authorized a 90-day pause of tariffs on non-retaliating countries, sending many markets screaming higher. The Dow closed 2,963 points higher with unprecedented volatility. This supported Class III milk futures, moving contracts significantly higher. The June contract gained as much as 59 cents, with May as much as 52 cents higher at one point. The attitude improved, increasing the expectation that international demand will remain strong. The gains may not hold if underlying cash prices do not increase further. The USDA will release the World Agricultural Supply and Demand report on Thursday.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.29 |
| 6 Month: | $17.77 |
| 9 Month: | $17.83 |
| 12 Month: | $17.80 |
CHEESE:
Manufacturers report that most cheese for the Easter season has been shipped. Demand remains steady while cheese output increases. This will continue to increase the supply and limit the upside price potential. Cheese prices have increased for three consecutive days, leaving traders anticipating weakness on Thursday. Hopefully, that pattern will be broken, and the strength of the outside markets will keep buyers active.
BUTTER:
Class IV futures did not see much strength or trading interest due to limited movement in the underlying cash. Traders did not buy into the market based on the strength in the outside markets. Butter supply is higher than cheese, leaving it in a bearish position. Butter is readily available for demand, with a substantial amount of butter moving to inventory.
OUTSIDE MARKETS SUMMARY:
May corn closed up 5.00 cents per bushel at $4.7400, May soybeans closed up 20.00 cents at $10.1275 and May soybean meal closed up $3.50 per ton at $294.50. May Chicago wheat closed up 2.25 cents at $5.4225. June live cattle closed up $4.75 at $198.38. May crude oil is up $2.77 per barrel at $62.35. The Dow Jones Industrial Average is up 2,963 points at 40,608 with the NASDAQ up 1,857 points at 17,125.
