GENERAL OVERVIEW:
Class IV futures felt the weight of lower spot prices, while Class III futures held up well overall. The block cheese price was unable to find support as had been expected from the cold storage report.
MILK:
Milk production across the country is strong, with some areas reporting they are experiencing the spring flush. Despite increasing production, milk components remain higher than they were this time last year. Bottling demand is variable, depending on the spring break periods for educational institutions. Milk that is being diverted is being handled easily, but has resulted in lower prices on the spot market. Spot milk prices in the Central region are as much as $6 below class. Class III futures closed mixed, with weakness in the spot cheese prices. The April through July contracts were lower, while the rest of the contracts were higher. The July and August contracts made new highs. Traders hold optimism that the weakness of cheese prices will be short-lived and will rebound and resume the uptrend. The potential for higher milk prices will keep milk production stronger than last year.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.00 |
| 6 Month: | $17.81 |
| 9 Month: | $18.14 |
| 12 Month: | $18.06 |
CHEESE:
For the week, blocks declined 8 cents with 22 loads traded. The weekly average price is $1.6305. Barrels declined 0.50 cent with two loads traded. The weekly average price is $1.5710. Dry whey gained 3 cents with one load traded. The block price declined to the lowest level since March 16.
BUTTER:
For the week, butter gained 2.50 cents with 120 loads traded. The volume this week exceeded the high volume we saw a few weeks ago. The weekly average price is $1.8155. Grade A nonfat dry milk gained 5.25 cents with 46 loads traded. The weekly average price is $1.9140. Friday showed the first price decline in Grade A nonfat after 15 consecutive days.
OUTSIDE MARKETS SUMMARY:
May corn closed down 5 cents per bushel at $4.6200, May soybeans closed down 14.50 cents at $11.5925, and May soybean meal closed down $6.80 per ton at $315.30. May Chicago wheat closed steady at $6.0500, and June live cattle closed up $3.98 at $238.78. May crude oil is up $6.35 per barrel at $100.83. The Dow Jones Industrial Average is down 333 points at 45,167, with the NASDAQ down 460 points at 20,948.
