MILK:
Just when it seems the market may have found stability, the rug gets pulled out from under it. Milk futures many times magnify the movement of the underlying cash. The decline of spot prices does not indicate the top is in, but likely the move was just a matter of price movement based on who needs to accomplish business on any given day. Milk production is strong, but demand is also improving. The Global Dairy Trade auction took place today with the trade-weighted average declining 1.6% from the previous event. This is the second consecutive decline. There were 16,307 metric tons of products sold at an average price of $4,332 per metric ton. Anhydrous milk fat price increased 1.4% to $7,373 per metric ton or $3.34 per pound. Butter remained steady at $7,811 per metric ton or $3.54 per pound. Buttermilk powder declined 6.1% to $2,834 per metric ton or $1.29 per pound. Cheddar cheese declined 4.2% to $4,759 per metric ton or $2.16 per pound. Lactose declined 2.0% to $1.371 per metric ton or $0.62 per pound. Skim milk powder declined 1.1% to $2,807 per metric ton or $1.27 per pound. Whole milk powder declined 3.7% to $4,173 per metric ton or $1.97 per pound. Mozzarella gained 2.3% to $4,897 per metric ton or $2.22 per pound.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.07 |
| 6 Month: | $19.09 |
| 9 Month: | $18.90 |
| 12 Month: | $18.76 |
CHEESE:
The decline of cheese prices may be temporary, with buyers possibly looking to purchase on price weakness. There might be a greater setback as the weakness could have buyers holding back to see how aggressive the sellers will be. Cheese production is increasing as all schools will be closed at the end of this week. More milk is moving to manufacturing.
BUTTER:
Butter should remain supported with price retracement limited. Retail demand is improving, limiting the growth of inventory. Exports are reported to be strong, with the April report to be released in a few days.
OUTSIDE MARKETS SUMMARY:
July corn closed up .25 cent per bushel at $4.3850, July soybeans closed up 7.25 cents at $10.4075 and July soybean meal closed up $.60 per ton at $294.50. July Chicago wheat closed down 3.00 cents at $5.3600. August live cattle closed down $1.25 at $209.75. July crude oil is up $0.89 per barrel at $63.41. The Dow Jones Industrial Average is up 214 points at 42,520, with the NASDAQ up 156 points at 19,399.
