GENERAL OVERVIEW:
Both Class III and Class IV futures closed lower for the week. Class III showed greater losses. Grain prices were under pressure from the disappointment that China did not commit to increasing grain purchases. Hay stocks on May 1 were 3.3 percent below a year ago.
MILK:
Both Class III and Class IV milk futures closed lower than at the end of last week. Class III futures were under greater pressure as spot cheese prices declined. Nearby Class III futures continue to roll down as premiums are eliminated from contracts as time moves on. As long as spot prices show limited upside potential, this will continue to take place. Hay stocks on May 1 totaled 23.3 million tons, down 3.3 percent from a year earlier. The state with the largest decline in stocks was Utah, down 41 percent. Wisconsin and New York were 35 percent lower. Texas declined 33 percent, with Colorado down 32 percent. Stocks of hay in West Virginia were 153 percent higher than a year ago. Ohio was 119 percent higher, Kansas was 70 percent higher, and Nevada was 44 percent higher. Grain prices fell over the past two days due to the disappointment that China did not commit to purchasing more grain this year during the Trump visit.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.20 |
| 6 Month: | $17.88 |
| 9 Month: | $18.02 |
| 12 Month: | $17.95 |
CHEESE:
For the week, blocks declined 6.75 cents with 24 loads traded. The weekly average price is $1.6035 per pound. Barrels declined 4.50 cents with no loads traded. The weekly average price is $1.5850 per pound. Dry whey declined 1.50 cents with 4 loads traded. The weekly average price is 68.70 cents per pound. The block price fell to the lowest price since April 9 and is at the bottom end of the wide trading range.
BUTTER:
For the week, butter declined 2.50 cents with 99 loads traded. The weekly average price is $1.6385 per pound. Grade A nonfat dry milk declined 1.75 cents with 28 loads traded. The weekly average price is $2.2810 per pound. The weakness of dry whey is a concern, as it gives the impression that the price has reached a plateau. This may pressure Class IV futures if it continues next week.
OUTSIDE MARKETS SUMMARY:
July corn closed down 11.75 cents per bushel at $4.5575, July soybeans closed down 15.50 cents at $11.7700, and July soybean meal closed up $1.80 per ton at $334.30. July Chicago wheat closed down 22.25 cents at $6.3575. June live cattle closed up $1.83 at $253.90. June crude oil is up $4.32 per barrel at $105.49. The Dow Jones Industrial Average is down 537 points at 49,526, with the NASDAQ down 410 points at 26,225.
