GENERAL OVERVIEW:
Grade A non-fat dry milk had an amazing week with record-breaking prices every day this week. The demand is unfaltering, and it is supporting Class IV despite butter's massive decline.
MILK:
Class IV Milk had a small setback from last week's close but is still firmly above $21.00 for the May and June futures contracts. Class III milk fell below $17.00 on the May contract today, falling 42 cents to the low of the week and rebounding back to $16.97 at the close. Spring flush is here, and production is ramping up in an already saturated market. The Strait of Hormuz is currently open, the stock market is rallying, while crude has fallen sharply. Should the canal remain open, this should support demand with economic support and help with fuel costs on farm and to ship products.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.24 |
| 6 Month: | $17.97 |
| 9 Month: | $18.11 |
| 12 Month: | $17.96 |
CHEESE:
For the week, blocks declined 3.15 cents with 22 loads traded. The weekly average price is $1.5765. Barrels declined 0.90 cents with no loads traded. The weekly average price is $1.5750. Dry whey increased 0.30 cents with four loads traded. The weekly average price is 70 cents. Blocks had moderate interest this week, while there was limited to no interest in buying or selling barrels. Traders are expecting steady prices for the next few weeks and optimism for retail demand.
BUTTER:
For the week, butter increased 0.80 cents with 47 loads traded. The weekly average price is $1.7505. Grade A nonfat dry milk increased 13.45 cents with 22 loads traded. The weekly average price is $2.1640. Butter had a little excitement this week, peaking at $1.79 on Tuesday and falling to $1.69 by Friday. That 10-cent drop weighed heavily on Class IV prices, however Grade A non-fat dry milk was the star of the show, making new record highs every single day in a historic rally, peaking at $2.20 at Friday's close.
OUTSIDE MARKETS SUMMARY:
May corn closed up 0.25 cent per bushel at $4.4875, May soybeans closed up 3.50 cents at $11.6725 and May soybean meal closed down $.90 per ton at $331.80. May Chicago wheat closed down 7.25 cents at $5.9125. June live cattle closed down $0.28 at $247.35. May crude oil is down 10.84 per barrel at $83.85. The Dow Jones Industrial Average is up 868 points at 49,447 and the NASDAQ is up 365 points at 24,468.
