Milk production continues to remain strong as the spring flush period continues. Some plants are turning down offers for discounted milk as their processing capacity has reached capacity. Spot milk ranges from $1.50 to $7.00 under class. Class I demand is slowing as bottling plants are reducing production due to schools closing or will be closing over the next few weeks. Spot milk prices a year ago were quite a bit better, with it only being $1.50 below class. The recent substantial increase in milk futures prices may run out of steam as it may be difficult for underlying cash prices to move much higher at this time of year. Once buyers have their needs filled and are comfortable with supplies, prices may drop back.
AVERAGE CLASS III PRICES:| 3 Month: | $18.68 |
| 6 Month: | $18.87 |
| 9 Month: | $18.70 |
| 12 Month: | $18.53 |
The large amount of block cheese traded during spot trading and the fact that unfilled bids and no uncovered offers remained at the close suggest the price could move higher on Friday. However, the weakness of barrels could influence buyer interest in the near term. The block price moved above the previous high from April 17 and has increased for eight consecutive days.
BUTTER:The butter price has not been able to break above the trading range and may remain in the range for a while. The abundant cream supply keeps churning active and supplies readily available for demand. Inventory remains higher than a year ago, but the stocks are moving closer to the level of a year ago.
OUTSIDE MARKETS SUMMARY:July corn closed down 1.75 cents per bushel at $4.4750, July soybeans closed up 5.75 cents at $10.4500 and July soybean meal closed down $.30 per ton at $294.70. July Chicago wheat closed down 5.00 cents at $5.2925. June live cattle closed up $1.73 at $214.25. June crude oil is up $1.84 per barrel at $59.91. The Dow Jones Industrial Average is up 254 points at 41,368, with the NASDAQ up 190 points at 17,928.
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