GENERAL OVERVIEW:
Milk futures did not respond as was anticipated in reaction to the movement of underlying cash. The increase in cheese and nonfat dry milk supported futures but did not propel them higher. March dairy cattle slaughter increased from a year ago.
MILK:
Class III futures were mixed but mostly higher with gains confined to single digits. The slight increase in the block cheese price provided the support. The gain in the barrel cheese price has no impact on the Class III price calculation and provides no direct support. Indirectly, it may have some influence, as an increase in the barrel price may mean an increase in demand. March dairy cattle slaughter totaled 239,200 head, an increase of 1,900 head from February and 21,300 head less than March 2025. This stands to reason, as February had three fewer days than March. This should be positive for the market, but the nation's cow numbers have increased by 187,000 head over March 2025. The advanced Class I price for May is $20.15 per cwt. This is up $1.49 from April and $1.78 higher than May 2025.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.39 |
| 6 Month: | $18.14 |
| 9 Month: | $18.34 |
| 12 Month: | $16.15 |
CHEESE:
The milk supply is sufficient for demand, but reports from the Midwest region indicate that there are fewer spot loads available on the market. However, at the same time, cheese manufacturers are not purchasing large volumes from the spot market as they have sufficient milk from patrons and regular suppliers. Spot milk prices have increased slightly from a week ago, with prices now $5.00 under class to class.
BUTTER:
Even though there is increased demand from Class II product production, butter manufacturers have not been purchasing much cream from the spot market, as they have sufficient from regular suppliers. Retail demand is reported as steady, while food service demand has slowed.
OUTSIDE MARKETS SUMMARY:
May corn closed up 1.25 cents per bushel at $4.5550, May soybeans closed down 4.75 cents at $11.5975, and July soybean meal closed up $.20 per ton at $316.50. July Chicago wheat closed up 13.25 cents at $6.2025. June live cattle closed up $0.43 at $243.50. June crude oil is up $2.89 per barrel at $95.85. The Dow Jones Industrial Average is down 180 points at 49,310, with the NASDAQ down 219 points at 24,439.
