MILK:
Milk futures closed mixed after initial weakness in the morning. The fundamentals remained much as they have been leaving the market reacting to daily trading activity. The Global Dairy Trade Auction trade-weighted average declined 0.9% from the previous event. There were 15,194 metric tons of products traded at an average price of $4,589 per metric ton. Anhydrous milk fat increased 0.9% to $7,237 per metric ton or $3.28 per pound. The butter price decreased 1.5% to $7,821 per metric ton or $3.55 per pound. Cheddar cheese decreased 9.2% to $5.007 per metric ton or $2.27 per pound. Lactose fell 13.2% to $1,398 per metric ton or $0.63 per pound. Skim milk powder price decreased 0.7% to $2,817 per metric ton or $1.28 per pound. The whole milk powder decreased 1.0% to $4,337 per metric ton or $1.97 per pound. Mozzarella increased 0.7% to $4,786 per metric ton or $2.17 per pound. The USDA will release the April Milk Production report on Wednesday.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.84 |
| 6 Month: | $18.97 |
| 9 Month: | $18.84 |
| 12 Month: | $18.62 |
CHEESE:
Cheese prices may have reached a threshold from which further upside price potential may be limited in the near term. Buyers may not be interested in paying much more for cheese as much of their immediate needs are filled, and it is too early to build inventory for later demand. Inventory is increasing seasonally as cheese production increases, but buyers do not want to increase inventory and pay for storage being uncertain of the increase in demand.
BUTTER:
The butter price is in a range and may remain that way into the summer. Seasonally, the butter price increases during the second half of the year and that is possible this year as well. Retail demand is reportedly increasing as the reasonable price increases buying interest.
OUTSIDE MARKETS SUMMARY:
July corn closed up 7.00 cents per bushel at $4.5450, July soybeans closed up 3.50 cents at $10.5425 and July soybean meal closed down $.80 per ton at $291.10. July Chicago wheat closed up 18.25 cents at $5.4725. June live cattle closed up $0.75 at $212.97. July crude oil is up $0.11 per barrel at $62.25. The Dow Jones Industrial Average is down 115 points at 42,677, with the NASDAQ down 73 points at 19,143.
