GENERAL OVERVIEW:
Thanks to the cash market for another record day for Grade A Non-Fat Dry Milk and a positive trade for cheese blocks, Class III and IV Milk futures contracts were able to rally.
MILK:
Class III milk futures had a good start to the day with overnight trade higher, and that support continued through the day. Cash trade helped to conserve the gains Class III had made with block cheese, taking back some of what it lost yesterday. Class IV Milk has nothing to do but climb higher when Non-Fat Dry keeps making new highs each day. The support keeps coming, with demand not slowing down despite record-breaking prices.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.51 |
| 6 Month: | $18.23 |
| 9 Month: | $18.40 |
| 12 Month: | $18.16 |
CHEESE:
Block cheese gained 0.25 cents today, taking back a small amount of what it lost Tuesday. Barrels were unchanged. Traders are optimistic about cheese prices. Dry Whey remained unchanged in the cash market but lost 1 cent in the futures trade today, most likely foreshadowing the market's bias for tomorrow's cash trade.
BUTTER:
The strong support in Class IV futures stems from the strength of Grade A nonfat dry milk. The spot Grade A nonfat dry milk price is at a record high, with no sign of price resistance from buyers, each day setting new records. The May and June Class IV futures are solidly above $21.00. Butter itself had an unremarkable day with no interest in the cash trade and futures falling 1.80 cents to 3.975 cents by late afternoon. It seems the interest that sparked yesterday's little rally was short-lived.
OUTSIDE MARKETS SUMMARY:
May corn closed up 8.25 cents per bushel at $4.5125, May soybeans closed up 9.00 cents at $11.6700 and May soybean meal closed up $4.70 per ton at $334.40. May Chicago wheat closed up 1.75 cents at $5.9375. June live cattle closed down $0.35 at $251.08. May crude oil is up .01 per barrel at $91.29. The Dow Jones Industrial Average is down 72 points at 48,463 and the NASDAQ is up 376 points at 24,016.
