MILK:
Traders had anticipated cheese prices to increase, pushing futures significantly higher early in the day. Blocks did increase, but steady barrels and lower dry whey trimmed the exuberance, causing Class III futures to fall back from the highs. It was not bearish for the market but resulted in traders turning cautious again. It seems milk futures are finding support based on the movement of underlying cash. This has improved the outlook for milk prices and increased the desire of farms to keep stalls full and push milk production. The FSA released the average soybean meal price for April at $295.03 per ton. This was $8.77 per ton lower than March and down $62.65 from April 2024. This puts the income over feed price at $10.42, resulting in no Dairy Margin Coverage payment.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.13 |
| 6 Month: | $19.30 |
| 9 Month: | $19.14 |
| 12 Month: | $18.93 |
CHEESE:
The block cheese price has moved to the highest level since Oct. 3, 2024. It may be difficult for the price to reach and exceed the $2.00 level anytime soon. Cheese production is increasing as more milk is moving to the vat due to schools closing for the summer. This will not overwhelm the market, but it keeps spot milk at a discount of as much as $7.00 below class. As of June 1, the barrel price is being removed from the mandatory reporting used in the weekly pricing of the class prices.
BUTTER:
The butter price has regained most of what it lost on Thursday last week. The price moved to within 1.50 cents of the recent high today. This indicates the market has good support, and higher prices are possible. Buyers are willing to purchase what is offered to the market in anticipation of increased demand.
OUTSIDE MARKETS SUMMARY:
July corn closed down 5.75 cents per bushel at $4.3825, July soybeans closed down 8.25 cents at $10.3350 and July soybean meal closed down $2.40 per ton at $293.90. July Chicago wheat closed up 5.00 cents at $5.3900. August live cattle closed up $1.65 at $211.00. July crude oil is up $2.22 per barrel at $63.01. The Dow Jones Industrial Average is up 35 points at 42,305, with the NASDAQ up 128 points at 19,243.
