MILK:
Class III futures spiked substantially higher in morning trading, showing considerable gains early, only to have the buying interest run out and prices fall back. The price activity in Class III futures this week gives the impression that the market has possibly established a peak. However, futures are not the price discovery mechanism and generally are a mirror of what cash is doing or of the perception of traders. The conclusion it the activity of today was merely the market correcting from the strong movement on Thursday. Monday may tell a different story depending on whether demand is improving or if buyers are just caught up in the frenzy and do not want to be left behind.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.99 |
| 6 Month: | $19.07 |
| 9 Month: | $18.87 |
| 12 Month: | $18.66 |
CHEESE:
For the week, blocks jumped 11.25 cents with 24 loads traded. The weekly average price was $1.8470. Barrels jumped 11.00 cents with seven loads traded. The weekly average price was $1.8025. Dry whey increased 0.75 cent with eight loads traded. The weekly average price was 53.85 cents. It certainly has been a surprise to see the block cheese price back to the level it had been on January 30. Cheese exports have been doing well, but March exports were 1.5% below March 2024.
BUTTER:
For the week, butter increased 1.25 cents with 16 loads traded. The weekly average price was $2.3420. Grade A nonfat dry milk increased 1.75 cents with 35 loads traded. Buying interest certainly came to life this week for nonfat, possibly indicating increased export business, as had been starting to be seen in March.
OUTSIDE MARKETS SUMMARY:
July corn closed down 5.00 cents per bushel at $4.4350, July soybeans closed down 1.25 cents at $10.5000 and July soybean meal closed down $4.50 per ton at $291.90. July Chicago wheat closed down 7.75 cents at $5.2500. June live cattle closed up $1.05 at $212.23. June crude oil is up $0.87 per barrel at $62.49. The Dow Jones Industrial Average is up 332 points at 42,655, with the NASDAQ up 99 points at 19,211.
