GENERAL OVERVIEW:
It has not been a good week for milk futures. The May and June Class III contracts fell by over $1.00 per cwt since Monday. The cheese price only declined by 0.50 cent. The March income over feed price was $9.57.
MILK:
Milk futures took a beating this week, with the May and June Class III contracts falling over $1.00 per cwt. This certainly was a surprise when making the correlation to the underlying spot prices. The block cheese price only decreased by 0.50 cent for the week. The barrel cheese price remained unchanged. The decline in the butter price influenced Class III futures, but not to the extent shown by the milk futures. Traders maintained a bearish posture throughout the week as the outlook for higher milk prices dimmed. Milk production continues to increase seasonally as the spring flush continues. The average soybean meal price for March was $326.15 per ton. This was an increase of $13.77 per ton from February and $22.35 per ton from March 2025. This results in an income over feed price for March of $9.57.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.47 |
| 6 Month: | $18.08 |
| 9 Month: | $18.11 |
| 12 Month: | $18.01 |
CHEESE:
For the week, blocks declined 0.50 cent with 11 loads traded. The weekly average price is $1.6430. Barels remained unchanged at $1.5150 with no loads traded. The weekly average price is $1.6150. Dry whey remained unchanged at 69.75 cents with three loads traded. The weekly average price is 70.25 cents. Cheese prices may remain in a range for a time as the milk supply remains sufficient for demand. Cheese production has increased due to higher milk receipts at the plant.
BUTTER:
For the week, butter fell 11.00 cents with 92 loads traded. The weekly average price is $1.6505. Grade A nonfat dry milk increased 0.25 cent with 19 loads traded. The weekly average price is $2.2590. Butter continues to trend lower as manufacturers are moving product as quickly as possible to keep inventory from building at the plant level.
OUTSIDE MARKETS SUMMARY:
July corn closed up 5.50 cents per bushel at $4.8025, July soybeans closed up 7.75 cents at $12.0325, and July soybean meal closed up $.40 per ton at $319.30. July Chicago wheat closed up 1.00 cent at $6.3775. June live cattle closed down $1.00 at $253.00. June crude oil is down $3.13 per barrel at $101.94. The Dow Jones Industrial Average is down 153 points at 49,499, with the NASDAQ up 222 points at 25,114.
