GENERAL OVERVIEW:
Class III futures traded lower, while Class IV futures were unchanged to slightly higher. Cheese futures fall later in the day while butter makes a small rebound from yesterday's sell-off.
MILK:
As the weather improves, expected milk production looms over the market. Class III futures closed 1 to 26 cents lower on the day, keeping up with the volatility the market has seen over the last few weeks. Class IV Milk remained steady to 4 cents higher, while Grade A Non-Fat Milk was mixed.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.20 |
| 6 Month: | $17.75 |
| 9 Month: | $17.98 |
| 12 Month: | $17.83 |
CHEESE:
The cash market was friendly to cheese, allowing blocks to climb another 0.75 cents higher and barrels to remain unchanged, despite the weakness of the futures market. The futures market prices for cheese fell 1.4 to 3.4 cents on the day, reflected in some of the milk class trade.
BUTTER:
Butter bucked the trend of the other classes of dairy, trading 2 cents higher in the cash trade and 1.6 cents to 1.75 cents higher in the futures market. There is demand for butter, and cash buyers are waiting for opportunities to grab as they can. The export market has given butter somewhat of a floor despite the daily volatility we have seen.
OUTSIDE MARKETS SUMMARY:
May corn closed up 9.75 cents per bushel at $4.5350, May soybeans closed up 9.75 cents at $11.7925 and May soybean meal closed down $.60 per ton at $309.30. May Chicago wheat closed up 15.50 cents at $5.8375. April live cattle closed up $0.18 at $238.53. April crude oil is up 4.14 per barrel at $78.80. The Dow Jones Industrial Average is down 784 points at 47,954 and the NASDAQ is down 58 points at 22,748.
