MILK:
Traders had little to go on, with most of the activity likely from guessing short-term price directions to take a small profit if they guessed correctly. The uptrend in cash cheese prices seems to have stalled as buyers do not need to remain aggressive. The flurry of activity as prices increased was from buyers who had been purchasing on an as-needed basis but wanted to get some ownership before prices increased further. The fundamentals of the market do not suggest there will be a tightening supply anytime soon. Spot milk prices remain discounted with available supply as schools close for the summer. Spring flush continues in most of the country. More milk is moving to manufacturing, which may keep inventory increasing through the middle of the year. The May Class III contract is nearly priced, and if it remains in this area, it will be about $1.00 per cwt above the April price.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.76 |
| 6 Month: | $18.92 |
| 9 Month: | $18.76 |
| 12 Month: | $18.57 |
CHEESE:
Cheese prices may have established support with limited downside potential. However, there may be little reason to increase very much either. Higher cheese production will require higher demand, or inventory will increase and limit price potential later in the year. Neither buyers nor sellers were aggressive during spot trading, indicating they may be comfortable at the current price level.
BUTTER:
Butter futures carry a seasonal premium to the underlying cash, with the November futures contract showing a price of $2.63. If this comes to fruition, it will be the lowest peak for the price for the year since 2021. Butter production has been higher for a number of months due to a record-high butterfat content in milk, providing a substantial volume of cream. That will decrease as the summer progresses and hot weather impacts milk production.
OUTSIDE MARKETS SUMMARY:
July corn closed down 5.50 cents per bushel at $4.4250, July soybeans closed up 1.25 cents at $10.7250 and July soybean meal closed down $4.80 per ton at $293.30. July Chicago wheat closed up 2.00 cents at $5.1725. June live cattle closed down $0.50 at $216.33. June crude oil is up $1.72 per barrel at $63.67. The Dow Jones Industrial Average is down 270 points at 42,140, with the NASDAQ up 302 points at 19,010.
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