MILK:
Milk production is mixed, with some areas continuing to see increasing production as the spring flush continues, while some areas are either holding steady or have moved past spring flush. Mik production is not declining, but the growth has slowed. Interestingly, milk futures did not respond positively to the significant increase in the block cheese price. It seems that the market was driven by the perception that the strength of cheese prices will be limited. Traders have not been active over the past two days, with the recent limited volatility not providing much opportunity for traders to scalp the market for short-term profits. Some bottlers are diverting milk as schools close, while others are making plans to divert milk as more schools close over the next few weeks.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.73 |
| 6 Month: | $18.91 |
| 9 Month: | $18.75 |
| 12 Month: | $18.57 |
CHEESE:
Spot milk remains available for as much as $7.00 below class. However, some plants indicate spot milk has tightened. It varies depending on the area and the market being supplied. Reports are that cheese demand from the food service industry is softening. This is somewhat usual during this time of year. Higher food prices are limiting some people from eating away from home as often.
BUTTER:
Butter output continues to remain strong as the cream supply is abundant. Churns are operating on full schedules, keeping a sufficient supply available for demand. Buyers purchased butter early when the price was lower, which may limit the upside price potential, as buyers may not need to be aggressive later this year. The prices should find seasonal support as demand will improve, but the demand may be easily met with supply.
OUTSIDE MARKETS SUMMARY:
July corn closed up 3.00 cents per bushel at $4.4550, July soybeans closed up 5.25 cents at $10.7775 and July soybean meal closed down $1.40 per ton at $291.90. July Chicago wheat closed up 7.50 cents at $5.2475. June live cattle closed down $2.38 at $213.95. June crude oil is down $0.79 per barrel at $62.88. The Dow Jones Industrial Average is down 89 points at 42,051, with the NASDAQ up 137 points at 19,147.
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