MILK:
The spring flush is evident in much of the country as milk production continues to increase. Schools will be closing over the next three weeks, resulting in bottling plants diverting more milk to manufacturing. This will not overwhelm the market, as it is seasonal, and plants will have the capacity to handle it. That may or may not affect cheese prices. Increased cheese production in March has not affected the market negatively or increased inventory significantly. Class III futures reached back to the highest level they have been since the end of January. The June contract has closed higher for the past eight consecutive days, gaining around $1.80 per cwt. The attitude of traders has turned somewhat bullish, switching futures from holding a discount to carrying a premium. Class IV futures have been lagging with gains over the past two days.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.84 |
| 6 Month: | $18.99 |
| 9 Month: | $18.80 |
| 12 Month: | $18.60 |
CHEESE:
The block cheese price is now within 1.50 cents of the previous high. Last time, the price fell back from that level. Hopefully, it will not follow the same pattern. Retail cheese demand is mixed, with some areas showing a demand increase. However, the Central region reports a decline in demand from food service. The inventory of cheese remains below a year ago, even though March cheese production was higher than March 2024. Cheese production will increase over the next few weeks as more milk is diverted as the bottling for school accounts ceases.
BUTTER:
The cream supply is plentiful, keeping churns active. Retail demand is improving, but it will need to improve more to tighten supply. The supply and demand are balanced, keeping the price confined to a range.
OUTSIDE MARKETS SUMMARY:
July corn closed down 6.25 cents per bushel at $4.4925, July soybeans closed down 2 cents at $10.3925 and July soybean meal closed up $2 per ton at $295. July Chicago wheat closed down 1.75 cents at $5.3425. June live cattle closed down $1.15 at $212.53. June crude oil is down $1.02 per barrel at $58.07. The Dow Jones Industrial Average is up 285 points at 41,114, with the NASDAQ up 49 points at 17,738.
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